Indian Seed Industry Structure and Developments

An Overview:

The Indian seed industry is one of the most significant pillars of the countrys agricultural ecosystem and plays a critical role in enhancing agricultural productivity, ensuring food security, and supporting rural economic development. As agriculture continues to contribute substantially to Indias economy and employment, the demand for quality seeds has become increasingly important for achieving higher crop yields, improving farm incomes, and promoting sustainable agricultural practices.

India is among the worlds largest seed markets, supported by diverse agro-climatic conditions, a wide variety of crops, and a rapidly evolving agricultural value chain. The industry comprises public sector organizations, private seed companies, research institutions, seed producers, distributors, and farmers, all of whom contribute to the development, production, processing, certification, and marketing of quality seeds. The increasing adoption of hybrid seeds, improved crop varieties, biotechnology, and precision farming practices has significantly transformed the industry over the past decade.

The Indian seed market encompasses a broad range of crops, including cereals, pulses, oilseeds, cotton, vegetables, fodder, and horticultural crops. The private sector has emerged as a key driver of innovation through substantial investments in research and development, hybrid seed technology, and advanced breeding programmes, while public institutions continue to play a pivotal role in developing and disseminating improved seed varieties, particularly for staple food crops.

Government initiatives aimed at promoting quality seed production, strengthening seed certification systems, improving varietal replacement rates, and encouraging the adoption of climate-resilient crop varieties have further supported the growth of the sector. Schemes focusing on agricultural modernization, digital agriculture, irrigation, and farmer welfare continue to create favourable conditions for the expansion of the seed industry.

The industry is also witnessing increasing emphasis on sustainability, climate resilience, and technological innovation. The growing impact of climate change has accelerated the development of drought-tolerant, disease-resistant, and high-yielding seed varieties capable of performing under diverse agro-climatic conditions. In addition, digital platforms, traceability systems, precision agriculture, and data-driven farming practices are improving seed distribution, farmer awareness, and supply chain efficiency.

Despite these positive developments, the industry faces several challenges, including unpredictable weather conditions, fragmented landholdings, fluctuating farm incomes, regulatory complexities, counterfeit seed circulation, and increasing input costs. Nevertheless, rising awareness among farmers regarding certified seeds, continuous advancements in seed technology, favourable government policies, and growing demand for high-value crops are expected to drive sustained long-term growth of the Indian seed industry.

Overall, the Indian seed industry remains well-positioned to capitalize on increasing agricultural mechanization, technological advancements, supportive policy initiatives, and expanding domestic as well as export opportunities. The continued focus on research and innovation, quality assurance, and sustainable agricultural practices is expected to strengthen the industrys contribution towards enhancing farm productivity, improving food security, and supporting Indias long-term agricultural growth.

Seed Types

SR.NO.	TYPE OF SEEDS	PARTICULARS
1.	Open-Pollinated Varieties (OPVs)	Traditional seeds that are saved from one generation to the next.
2.	Hybrid Seeds	Produced by cross-breeding two different parent plants, resulting in improved crop characteristics. Hybrids often offer higher yields and uniformity.
3.	Genetically Modified (GM) Seeds	Although not widely adopted, GM crops like but cotton have been introduced in India. These seeds have been genetically engineered to resist pests or tolerate herbicides.

Seed Companies

SR.NO.	TYPE OF SECTOR	PARTICULARS
1.	Public Sector	Government agencies and institutions like the Indian Council of Agricultural Research (ICAR) and state agricultural universities are involved in seed production, research, and distribution.
2.	Private Sector	Private seed companies, both domestic and multinational, play a significant role in the industry. They invest in research and development (R&D), marketing, and distribution of seeds.

Seed Research and Development

SR.NO.	TYPE OF RESEARCH	PARTICULARS
1.	Public Research	Public sector institutions conduct research on crop breeding, seed technology, and biotechnology. This research often leads to the development of new seed varieties.
2.	Private Research	Private seed companies invest heavily in R&D to develop hybrid seeds and biotech traits. They often collaborate with international partners for access to technology.

SEED PRODUCTION:

Seed Distribution:

Seeds are distributed through a network of dealers, distributors, and retailers. In some cases, companies have their own retail outlets.

Government agencies often distribute seeds through public distribution systems and government-owned seed corporations.

Developments:

The Indian seed industry was undergoing several developments and changes. Such as

Biotechnology and Genetically Modified (GM) Crops:

India had seen increased adoption of GM crops, primarily Bt cotton, despite regulatory challenges and debates around other GM crops like Bt brinjal. The government continued to regulate GM crops cautiously.

Hybrid Seed Technology:

The development and adoption of hybrid seed varieties were on the rise for various crops like rice, maize, and vegetables. Private seed companies were actively involved in research and development efforts to create high-yielding hybrid seeds.

Technology and Digitalization:

There was a growing emphasis on the use of technology in seed production, distribution, and farm management. Digital platforms and apps were being used for crop monitoring, seed selection, and market access.

Sustainability and Organic Seeds:

There was an increasing interest in sustainable and organic farming practices. Some seed companies were focusing on developing organic seed varieties to cater to this growing demand.

Seed Certification and Quality Standards:

The Indian government continued to enforce strict seed quality standards through regulatory bodies like the Seed Control Order and the National Seeds Corporation (NSC).

Exports:

The Indian seed industry had been exploring export opportunities for various seed varieties, especially vegetables and high-value crops. Exporters had to comply with international phytosanitary standards.

Public-Private Partnerships (PPP):

Collaborations between government research institutions and private seed companies were becoming more common, particularly in the development and commercialization of new seed varieties.

Seed Start-ups and Entrepreneurship:

Several start-ups and entrepreneurial ventures were entering the seed industry, focusing on niche markets and innovative seed technologies.

Government Initiatives:

The Indian government had been implementing various initiatives to promote seed production, including the National Food Security Mission (NFSM) and the National Mission on Oilseeds and Oil Palm (NMOOP), which aimed to enhance oilseed production through improved seed varieties.

The seed industry is dynamic, and developments can change rapidly due to policy changes, market dynamics, and technological advancements.

BUSINESS OVERVIEW

We are a technology driven seeds manufacturing Company engaged in business of growing, developing, processing and marketing of variety of seeds for a range of field crops and vegetables. We are primarily involved in seed processing wherein the improved genetic materials of the breeder seed is grown and multiplied into foundation seed. Thereafter, the foundation seed undergoes next level of processing in which the foundation seed is grown and multiplied into commercial seeds, which is then sold in market for crop production. We have different variants of seeds being sold for each crop depending upon suitability of our seeds for varying agro-climatic conditions, such as water availability, crop duration and soil attributes, across different geographic regions in India.

Breeder seeds are genetically pure seed with physical purity produced from basic nucleus seed stock and procured from original breeder. Some of the state Government agricultural universities from which we procure breeder seeds include Mahatma Phule Krishi Vidapeeth, Rajasthan Agricultural Research Institute, Indian Agricultural Research Institute etc.

Our company enters into seed grower production agreement with seed growing farmers for leasing their land on lease rentals to develop and produce the foundation and commercial seeds. Under these agreements, the farmer is engaged to carry out agricultural operations over the leased agricultural land, however the ownership of the entire crop and the risk of crop failure is retained with our company. The farmers are compensated for their services of producing such seeds and for all production expenses such as land preparation, irrigation, sowing, fertilization, combat against pests and diseases, weeding, harvesting, thrashing etc. During large-scale production, we monitor the crops under given field conditions and have the farmers carry out all the required steps until maturity to produce the seeds to be sold at the desired levels of quality. We choose the location for production of the seeds to be sold based on the agro-climatic conditions required for different crops, availability of skilled labour and other related infrastructure etc. Such grown commercial seeds are then processed at our processing unit, which is equipped with modern technology and is spread across an area of more than 45,000 sq. feet, situated at Kuvadva, Rajkot.

Accredited with ISO 9001:2015, our Company sells its seeds under the brand name USA seeds. The sole focus of the company is to deliver Quality Seeds to the Farmer and the commitment to quality has resulted in USA Seeds being recognised as a premium brand by the farmers. Since our incorporation we have been continuously working on and improving our quality to serve our clients better.

During the year under review, the Company has produced seeds for more than 40 different field crops and vegetables and have operations across India covering Gujarat, Maharashtra, Rajasthan with more than 75 varieties of Crops. Our product portfolio includes crop seeds for Groundnut, Wheat, Cumin, Green Gram, Black Gram and vegetable seeds for Onion, Coriander Seeds, Fenugreek etc.

SWOT ANALYSIS

SWOT ANALYSIS

STRENGTHS

Diverse Portfolio

Strong R&D

Market Presence

Export Potential

Government Support

Quality Assurance

Experienced Team

OPPORTUNITIES

Technology Adoption

Sustainable Farming

Market Expansion

Climate-resilient

Strategic Alliances

WEAKNESSES

Regulatory Burden

Small Farmer Depend.

IP Protection Issues

THREATS

Pest & Diseases

Climate Change

Trade Restrictions

Consumer Changes

Policy Changes

Competition

SEGMENTWISE AND PRODUCTWISE ANALYSIS:

PRODUCT LIST FIELD CROP VARIETY

NO.	CROP	NOTIFIED
1	GROUNDNUT	GAUG-10, GG-20, TAG-24, TG-37-A, TG-38, GG-5, TPG-41, SB-11, TG-26, TLG 45, GG-2, GJG-22, GJG-32, GJG-39, RG-559-3, GG-34, PDKVG 335, KDG-128 PHULE WARANA, JL-776 PHULE BHARATI, GJG 33, KADIRI AMARAVATHI, KADIRI LEPAKSHI, DH 232
2	WHEAT	LOK-1, HD-2189, GW-496, GW-173, HI-1544 (PURNA), GW-451, PHULE SAMADHAN, JW-3382, DBW-168, HI-1605, GW 11, GW-322, GW-273, GJW 463, GW 366, GW-322,
3	CUMIN	UJ-2, GUJ-44
4	GRAM (HARBHARA)	GUJ-1, GUJ-2, GUJ-3, GUJ-4, PKV-2, VIJAY, DIGVIJAY, VISHAL, JAKI-9218, RSG-807 (ABHAR), PHULE VIKRAM
5	LUCERN (RAJKA)	RL-88, CO-3, AL-3,
6	BLACK GRAM (UDID)	TAU-1, T-9, DU 1, IPU 2-43, UTTARA, MU-2, AKU-10-1, GUJ-2
7	GREEN GRAM (MOONG)	GUJ-4, VAIBHAV, DGGV-2, VIRAT, BM-2003-02, RMG 975, MSJ-118, SHIKHA, SML-668, SML-832, GM-6, GM-7, MEHA
8	PADDY	PDKV KISAN, GNR-3, PR-124, GAR-14, MAHISAGAR, INDIRAYANI
9	MOTH BEAN	RMO-2251
10	GUM GUAR
11	ISABGOL	GUJ-1
12	FODDER BAJRA	AFB-3, RAJ BAJRA 1
13	BAJRA	ABPC-4-3, RHIB-223
14	FENNEL
15	MUSTARD	DRMRIJ-31
16	SESAME	GUJ-1, GUJ-2, GUJ-3, RT 351, GTIL-4, G.TIL-6, PKV-NT-11, GJT-5
17	SORGHUM	M 35-1
18	FODDER SORGHUM (SSG)	GAFS 11, CSV 33 MF, SSG-898
19	FODDER MAIZE	AFRICAN TALL
20	SOYABEAN	JS-335, JS-9305, JS-9560, AMS-1001 (PDKV YELLOW GOLD), JS 20-34, KDS 726 (PHULE SANGAM), JS 20-98, MAUS 612
21	PIGEON PEA	ICPL-87, VIPULA, BDN-2, GNP-2, GT 103, GT-104, BDN-716, GRG-811, GRG-152, LRG-52
22	ASH GOURD	KASHI DHAVAL
23	OKRA	PARBHAKI KRANTI, GAO-5
24	PALAK	ALL GREEN
25	RADISH	PUSA CHETKI, JAPANESE WHITE, PUSA HIMANI
26	RAJMA	PHULE VARAN
27	METHI	RMT-305, KASRI, PEB
28	PEA	ARKEL
29	COWPEA	DC-15, KASHI KANCHAN, KASHI NIDHI
30	CUCUMBER	PB NAVEEN
31	CLUSTER BEAN	GUJ-1, GUJ-2, RGC-1055
32	CAULIFLOWER	S AGRIM
33	CARROT	PUSA KESAR, PUSA RUDHIRA
34	BRINJAL	PUSA KRANTI, PUSA PURPLE LONG
35	BOTTLE GOURD	PHULE SAMRAT, PSPL
36	BITTERGOURD	PHULE GREEN GOLD, PREETHI
37	ONION	N-53, PUSA RED, PUSA MADHVI
38	GUAR	GUJ-1, GUJ-2, RGC-1055
39	SPONGE GOURD	PUSA SNEA, PUSA SUPRIYA, PUSA CHIKNI
40	TOMATO	PED, PUSA GAURAV

FINANCIAL AND OPERATIONAL HIGHLIGHTS:

Your Directors are pleased to present that during the financial year ended March 31, 2026, the Company recorded a turnover of ?1,10,69,60,638.63, as compared to ?1,32,94,84,753.00 in the previous financial year. The Company earned a Net Profit of ?7,47,80,995.00 during the year under review, as against ?8,49,43,671.00 in the previous financial year.

Your Directors remain confident about the Companys long-term growth prospects and are committed to identifying and capitalizing on emerging business opportunities, strengthening market presence, expanding the product portfolio, and enhancing stakeholder value. With a prudent business strategy and sustained focus on operational excellence, your Directors foresee promising growth opportunities for the Company in the years ahead.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established and maintained an adequate system of internal financial controls commensurate with the size, scale, complexity, and nature of its business operations. These controls are designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information in compliance with applicable laws and regulations.

The internal control framework encompasses well-defined policies and procedures, appropriate delegation of authority, segregation of duties, authorization and approval processes, periodic reconciliations, budgetary controls, and continuous monitoring of key operational and financial activities. The Company also has systems in place to ensure compliance with statutory requirements and adherence to internal policies and procedures.

The effectiveness of the internal control systems is periodically reviewed by the management and the Audit Committee of the Board. Internal audit observations and recommendations are regularly monitored, and appropriate corrective actions are implemented wherever considered necessary. Based on such reviews, the Board is of the opinion that the Companys internal financial control systems are adequate and operating effectively during the financial year under review, and no material weakness in the design or operation of such controls was observed.

RISKS AND CONCERNS:

The seed industry operates in a dynamic business environment and is exposed to various internal and external risks that may influence operational and financial performance. The Company recognizes that effective risk management is fundamental to achieving its strategic objectives and sustaining long-term growth.

The principal risks faced by the Company include adverse climatic conditions, fluctuations in agricultural demand, changes in government policies and regulations, volatility in raw material prices, supply chain disruptions, increasing competition, quality assurance risks, and evolving customer preferences. The Company also remains vigilant towards risks arising from changing market dynamics and technological advancements within the agricultural sector.

To address these challenges, the Company has established a comprehensive risk management framework that enables the timely identification, assessment, monitoring, and mitigation of significant business risks. Senior management periodically reviews key risk indicators and implements appropriate mitigation strategies through operational planning, cost optimization, quality control measures, strengthening of procurement and distribution networks, and continuous monitoring of business processes.

The Company also focuses on maintaining operational resilience through effective internal controls, prudent financial management, and compliance with applicable statutory and regulatory requirements. By adopting a proactive approach to risk management, the Company endeavors to minimize potential adverse impacts while capitalizing on emerging business opportunities.

The management believes that its structured risk management practices and continuous monitoring mechanisms position the Company to effectively manage uncertainties and support sustainable growth in a competitive business environment.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company firmly believes that its human resources are its most valuable asset and a key driver of sustainable growth, operational excellence, and long-term value creation. The continued commitment, expertise, and dedication of its employees have significantly contributed to the Companys performance and business success.

The Company is committed to fostering a culture of continuous learning, innovation, collaboration, and performance excellence. It focuses on attracting, retaining, and developing talented professionals by providing opportunities for skill enhancement, leadership development, and career progression. Regular training and development programmes are conducted to equip employees with both technical and behavioural competencies, enabling them to adapt to evolving business requirements, technological advancements, and industry best practices.

The Company also strives to provide a safe, healthy, inclusive, and conducive work environment that encourages teamwork, employee engagement, innovation, and ethical conduct. Performance-driven practices, transparent communication, and recognition of employee contributions remain integral to the Companys human resource philosophy.

Industrial relations remained cordial and harmonious throughout the financial year under review. The Company continues to maintain constructive relationships with its employees and remains committed to ensuring employee welfare, statutory compliance, workplace safety, and a positive organizational culture that supports sustainable business growth.

Conclusion

The Company remains committed to strengthening its market position through operational excellence, product quality, innovation, and customer-centric business practices. While the business environment continues to present certain challenges, the management is confident that the Companys sound business fundamentals, prudent financial management, robust internal control framework, experienced leadership, and dedicated workforce will enable it to effectively navigate market uncertainties and capitalize on emerging growth opportunities.

The Company will continue to focus on sustainable growth by enhancing operational efficiencies, expanding its product portfolio and market reach, strengthening stakeholder relationships, and creating long-term value for its shareholders. With a positive outlook for the agricultural and seed industry, the management remains optimistic about the Companys future growth prospects and its ability to deliver sustainable performance in the years ahead.

Cautionary Statement

Statements made in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies, climatic conditions, market demand, competitive pressures, regulatory developments, availability of raw materials, and other risks beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law.

THE ANNUAL REPORT ON CSR ACTIVITIES

As required under Section 135 of the Companies Act, 2013, and the Companies (Corporate Social Responsibility Policy) Rules, 2014, our company has adopted a Corporate Social Responsibility (CSR) policy for the first time.

1. BRIEF OUTLINE OF THE CSR POLICY OF THE COMPANY:

The Company recognizes that Corporate Social Responsibility (CSR) is an integral part of its business philosophy and is committed to contributing towards sustainable economic and social development while creating long-term value for all stakeholders. The Company believes in conducting its business in a socially responsible, ethical and environmentally sustainable manner.

Pursuant to the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company has adopted its Corporate Social Responsibility Policy to provide a framework for undertaking CSR activities in accordance with the provisions of the Companies Act, 2013 and Schedule VII thereto.

The CSR Policy aims to undertake initiatives that create a positive and lasting impact on society by supporting projects and programmes in areas such as education, healthcare, sanitation, safe drinking water, environmental sustainability, rural development, livelihood enhancement, women empowerment, skill development and other activities as specified under Schedule VII of the Companies Act, 2013.

The Company intends to give priority to CSR initiatives that address the basic needs of economically weaker and underprivileged sections of society and contribute towards inclusive and sustainable development. The implementation and monitoring of CSR projects shall be carried out in accordance with the Companys CSR Policy and the applicable provisions of the Companies Act, 2013, the Rules made thereunder, and such guidelines as may be issued by the Government from time to time.

COMPOSITION OF CSR COMMITTEE:

SR.NO. NAME OF THE DIRECTOR	DIN	DESIGNATION IN THE COMMITTEE
1 ARVINDKUMAR JADAVJIBHAI KAKADIA	06893183	Chairman
2 VIKEN JENTILAL KAKADIYA	07822734	Member
3 SONALBEN ARVINDBHAI KAKADIYA	07857775	Member
4 RAJ HITESHKUMAR KAKKAD	08867634	Member (Independent Director)

2. PROVIDE WEBLINK WHERE COMPOSITION OF CSR COMMITTEE, CSR POLICY AND CSR PROJECTS APPROVED BY THE BOARD ARE DISCLOSED ON THE WEBSITE OF THE COMPANY:

The composition of the Corporate Social Responsibility (CSR) Committee, the Corporate Social Responsibility Policy and the details of the CSR projects/programmes approved by the Board are available on the Companys website and can be accessed at: Website: 

3. (a) Average net profit of the company as per section 135(5):

S.NO. YEAR	NET PROFIT (considered for computing CSR) (IN RUPEES)
1 2025-2026	7,91,48,282/-
2 2024-2025	8,82,39,175/-
3 2023-2024	7,78,02,873/-
Average Net Profit of previous three financial years	8,17,30,109.88/-

(b) CSR Budget as per section 135(5):

The company will allocate 2% of its average net profits for the last three financial years towards CSR activities i.e. Rs. 16,34,602.20

4. Implementation:

The CSR Committee shall oversee the implementation of the Companys Corporate Social Responsibility (CSR) initiatives in accordance with the CSR Policy, the Annual Action Plan approved by the Board, and the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014.

The Committee shall periodically review the progress of CSR projects and programmes, monitor the utilization of CSR funds, and ensure that the CSR activities are implemented in a transparent, efficient and accountable manner. It shall also assess the effectiveness and impact of the CSR initiatives, wherever applicable, and recommend suitable measures for improving the implementation and monitoring of CSR activities from time to time.

5. Monitoring and Reporting:

The Corporate Social Responsibility (CSR) Committee shall periodically monitor the implementation and progress of the CSR projects and programmes undertaken by the Company and review the utilization of the CSR funds to ensure that the activities are carried out in accordance with the approved CSR Policy and the Annual Action Plan.

The CSR Committee shall submit its recommendations and periodic reports to the Board of Directors on the status and effectiveness of the CSR initiatives. The Board shall satisfy itself that the CSR activities are implemented in compliance with the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014.

The Company shall make the prescribed disclosures relating to its CSR Policy, composition of the CSR Committee, CSR projects and programmes, and the Annual Report on CSR Activities in its Boards Report and on the Companys website, as applicable, in accordance with the provisions of the Companies Act, 2013 and the rules made thereunder.

Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

Not Applicable

? Yes ? No

If Yes, enter the number of Capital assets created/ acquired

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

Sl. No. Short particulars of the property or asset(s) [including complete address and location of the property]	Pin code of the property or asset(s)	Date of creation	Amount of CSR amount spent	Details of entity/ Authority/ beneficiary of the registered owner
(1) (2)	(3)	(4)	(5)	(6)
				CSR Registration Number, if applicable	Name

All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/Gram panchayat are to be specified and also the area of the immovable property as well as boundaries)

BY AN ORDER OF BOARD OF DIRECTOR
FOR UPSURGE SEEDS OF AGRICULTURE LIMITED

Date: 08.09.2026
Place: Kuvadva