The National Seed Association of India (NSAI) on Tuesday asked the government to treat loans given to the seed sector at par with agriculture, and also make available adequate low-interest working capital and soft loans for building infrastructure and investment in research and development.

In a letter to the Agriculture Ministry, NSAI president M Prabhakar Rao also urged the government to provide 25 per cent capital subsidy on seed infrastructure investment, and said 100 per cent FDI should not be allowed in seed sector, much like the restriction placed by countries like China.

The NSAI said only intellectual property protection available for seeds and plant varieties, including transgenic plant varieties, in India falls under the Protection of Plant Varieties and Farmers Rights Act (PPVFRA). The rules under the Indian Patent Act and the PPVFRA should be enforced in letter and spirit so that farmers and national agriculture can benefit.

There should be uniform procedure and requirements for seed licence or new variety inclusion in licences for all States, besides allowing central licensing for seed companies having R&D, production, processing and marketing operations in multiple States.

Boost seed research

Rao said that local small and medium seed companies would be encouraged to invest more in R&D if their research investment is reimbursed up to 50 per cent. Besides, SMEs in the seed sector should be given free access to seed quality testing by encouraging them to set up accredited third party seed testing laboratories.

Apart from encouraging collaboration with public-funded agricultural research institutes, varietal testing fees in Indian Council of Agricultural Research seed trials should be rationalised so that a large number of seed companies with 100 per cent local ownership can participate in trials.

The NSAI also wanted the government to set up special economic zones to produce seeds for exports, and the formulation of policy and procedures for custom seed production of foreign varieties exclusively for export purposes.

It further said that an income tax dispute resolution mechanism, which the NSAI earlier recommended and got approved by the Agriculture Ministry, is still pending with the Central Board of Direct Taxes. This may be resolved by bringing a rule similar to what is available for coffee, tea or rubber sectors.

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