Proposed Seed Act targets fake and substandard seeds with mandatory registration, QR-based traceability, tougher penalties and faster farmer compensation

New Delhi, September 10, 2026: The Government of India is consulting farmer organisations across the country on a proposed stronger Seed Act aimed at protecting farmers from fake and substandard seeds and creating a more accountable seed supply chain.

Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan held consultations with farmer leaders from across India at Krishi Bhawan, New Delhi. Representatives of around 20 farmer organisations participated and submitted suggestions on the proposed legislation.

The government has said there will be no haste or fixed deadline for finalising the new law, with further stakeholder inputs to be considered.

Key Highlights

• Existing Seed Act dates back to 1966, with the Seeds Control Order introduced in 1983.
• Government estimates around 70% of seeds currently fall outside the existing law’s ambit.
• Proposed law to introduce 100% registration of seeds and planting material for market sale.
• QR codes to enable end-to-end traceability of seed packets.
• Serious offences could attract penalties of up to ₹30 lakh and imprisonment.
• Farmers’ rights to use, exchange and sell traditional and farmers’ seed varieties will remain protected.
• State governments could receive greater powers to release locally suitable new seed varieties.
• Seed Security Funds proposed in every state.
• Compensation for verified seed failure or crop loss proposed within 15 days.
• Farmers will retain the right to seek compensation under the Consumer Protection Act.

1966 Seed Law Faces a Regulatory Reset

The government said the existing Seed Act, enacted nearly six decades ago, is no longer sufficient to address the changing agricultural landscape and challenges surrounding fake and poor-quality seeds.

According to the Agriculture Ministry, approximately 70% of seeds currently remain outside the ambit of the existing Seed Act, while regulatory procedures vary between states and existing penalties may not provide an adequate deterrent.

The government had previously invited suggestions on the draft Seed Act in November–December 2025 and received around 18,000 submissions from farmers and farmer organisations. The latest consultation seeks more direct feedback from organisations working on the ground.

QR Codes to Create End-to-End Seed Traceability

One of the key proposed changes is the introduction of mandatory registration and QR-based traceability.

Under the proposed framework, seeds and planting material intended for commercial sale would need to be registered in a national register. Seed packets would carry QR codes containing information that can help trace their origin, manufacturer, laboratory clearance and movement through the supply chain.

The move could make it easier to identify accountability when poor-quality or failed seeds cause losses.

Tougher Penalties for Fake Seed Trade

The proposed legislation categorises violations according to their severity.

• Minor violations: Warning for the first offence and a penalty of up to ₹50,000 for the second.
• Deliberate violations: Penalties of ₹1 lakh for the first offence and ₹2 lakh for the second for issues such as failure to provide required information, incorrect branding or failure to affix QR codes.
• Serious offences: Selling fake seeds, operating without registration or deliberate fraud could attract penalties of up to ₹30 lakh along with imprisonment.

The proposed penalties are intended to strengthen deterrence against fraudulent activities in the seed market.

Farmers’ Traditional Seed Rights to Remain Protected

The proposed law would not prevent farmers from using, exchanging or selling traditional and farmers’ varieties of seeds.

Registration would not be mandatory for traditional seeds. Farmers could voluntarily register their varieties if they choose to do so.

The proposal also provides that farmers producing seed for personal use, village-level distribution or even for a company would not be required to undertake digital registration under these provisions.

States Could Get Faster Approval for Local Seed Varieties

The proposed legislation would give state governments greater authority to release new seed varieties based on recommendations from state-level committees, while continuing to follow national standards.

This could enable states to introduce varieties better suited to local climatic conditions and regional agricultural requirements.

A single national online register would also record seed varieties, allowing both the Centre and states to access the same database and reducing duplication.

Seed Security Funds Proposed Across States

A Seed Security Fund is proposed in every state to strengthen the mechanism for addressing farmer losses arising from seed failure.

According to the proposal, penalties and recoveries collected under the Seed Act would be deposited into these state-level funds. In cases of seed failure or farmer loss, a verification committee would facilitate compensation within 15 days.

Farmers would also retain the right to pursue compensation under the Consumer Protection Act.

Impact on Food, Hospitality and Travel & Tourism

Food Supply Chain

A stronger seed regulatory framework could have a long-term impact on crop productivity, quality and supply reliability. Greater accountability in the seed market can help reduce the risk of poor-quality planting material disrupting agricultural production.

Hotels & Restaurants

For the hospitality industry, the implications are indirect but significant. More stable agricultural production can support the availability of key ingredients used by hotels, restaurants and institutional food businesses, particularly in farm-linked procurement markets.

Local & Traditional Food

Protection of farmers’ traditional seed varieties could support the continued cultivation of region-specific crops and indigenous food varieties. This can contribute to regional cuisines, local food experiences and culinary storytelling.

Culinary & Agri-Tourism

Traditional crops and farmer-led seed systems can become part of broader farm-to-table, agri-tourism and culinary tourism experiences, particularly where destinations build tourism around local food heritage.

Industry Takeaway

The proposed Seed Act represents a potential shift towards a more traceable, technology-enabled and accountable seed supply chain in India. For the wider food and hospitality ecosystem, its importance lies beyond farming: reliable agricultural inputs ultimately influence the availability, quality and consistency of ingredients reaching food businesses.

If implemented with effective state-level enforcement and farmer accessibility, the proposed framework could strengthen confidence across the agricultural value chain while protecting the diversity of traditional crops and regional food systems.