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Time of India
08-07-2025
- Business
- Time of India
First in India: Private seed firms compensate 671 Telangana farmers for crop losses; Rs 60,000 to Rs 1.25L per acre paid
HYDERABAD: In a groundbreaking development that could set a precedent for Indian agriculture, 671 maize farmers in Telangana's Mulugu district were compensated on Monday by four private seed companies, including a multinational giant, for massive crop losses caused by substandard seeds. This is the first time in Telangana-and possibly in India-that private seed firms have paid direct compensation to hundreds of affected farmers, following sustained pressure from govt officials and irrefutable video evidence collected from the fields. The farmers, who suffered heavy losses over 1,500 acres, received cheques ranging from ₹60,000 to ₹1.25 lakh per acre, depending on the severity of damage and input costs. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad Failed promises The crisis unfolded a few months ago across the mandals of Wajedu, Venkatapuram, Kannaigudem, and Tadwai in Mulugu district, where maize farmers reported abysmally low yields despite using genetically modified (GM) seeds provided by seed companies. These farmershad been assured yields of four tonnes per acre, but in reality, ended up harvesting barely one tonne or less. The resulting losses triggered widespread protests, as farmers demanded accountability and compensation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Descubra o Brasil na Expo Osaka [Explore] Estúdio Folha Leia mais Undo Their voices gained traction when local officials launched an unusual and rigorous investigation by personally visiting every affected farmer, documenting their losses on video, and collecting testimonial evidence in the presence of company representatives. "For four months, govt officials visited each farmer's home, and in the presence of representatives from seed companies, they recorded video evidence of the situation," said TS Divakara, district collector. "After considerable effort, we were able to send notices to the companies demanding compensation, and ultimately, they complied," he told TOI. The compensation cheques were handed out at a public event in Mulugu, attended by agriculture minister Tummala Nageswara Rao and panchayat raj minister Seethakka . This unprecedented compensation drive also brings into sharp focus the glaring gaps in India's seed regulation framework. The Central Seed Act of 1966 (amended in 1972), which governs seed quality in India, imposes paltry penalties: ₹500 for a first offence, and ₹1,000 or six months of imprisonment for repeat violations. "Farmers have no choice but to approach consumer courts, which can be a lengthy process," Divakara said. S Anvesh Reddy, chairman of the Telangana Seeds Development Corporation, said: "This is possibly the first instance in the country where hundreds of farmers simultaneously received compensation from seed companies."


Time of India
29-05-2025
- Time of India
‘Truthful label', lax laws shield seed firms, farmers pay price
Hyderabad: A few months ago in Mulugu district, over 3,000 acres of maize were reduced to barren fields. The farmers who toiled over this land, season after season, found themselves with nothing but withered crops and empty promises. In protest, they took to the streets, demanding accountability from seed companies whose defective products led to their losses. An inquiry was launched. Companies agreed to pay compensation—even though the law didn't compel them to. Yet, to this day, not a single rupee has reached the farmers. This isn't an isolated incident. Lakhs of farmers have suffered similar devastation due to substandard or spurious seeds. But time and again, the companies responsible walk away unscathed, shielded by outdated laws and a deceptive mechanism known as 'truthful labelling.' "In the last decade, we must have come across at least 1,000 instances where farmers suffered losses due to spurious seeds," says Pasya Padma, general secretary of the Telangana Rythu Sangham. "And these are just the cases we know about. Most go unreported. Even when farmers go to court, the compensation is meagre—and they rarely receive even a receipt for their purchase," she said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trending in in 2025: Local network access control [Click Here] Esseps Learn More Undo The problem runs deep, particularly in Telangana, where cotton, mirchi, and paddy farmers in districts like Adilabad, Nalgonda, Nizamabad, Warangal, and Khammam repeatedly fall victim to this cycle of exploitation. Take, for instance, another tragedy in Mulugu two years ago. More than 2,000 acres of mirchi crops were wiped out due to faulty seeds sold by a single company. After a legal battle, the company was banned from selling in Telangana. But instead of facing consequences, they simply relocated their operations to the Andhra-Telangana border—and resumed business as usual. Truth behind the label So how do these companies escape liability? The answer lies in the 'truthful label' clause, a loophole in the Central Seed Act of 1966 (amended in 1972). Originally intended to regulate the quality of seeds for India's agricultural sector, the law mandated penalties of a mere Rs 500 for first-time offences and Rs 1,000 or six months' imprisonment for repeat violations. But the real turning point came in the 1980s, with the liberalisation of the seed industry. The Seed Order of 1986 opened the floodgates for private players, who were now allowed to sell seeds under 'truthful labels'—self-declared assurances of quality without any third party certification. This means a company can print its own claim of quality, sell its product, and face virtually no regulatory scrutiny. "If companies truly sold high quality seeds under truthful labelling, we wouldn't have a problem," says GV Ramanjaneyulu, agriculture scientist and long-time advocate for seed reforms. "But they don't. And because there's no certification mechanism, there's no accountability. It's a system built to fail the farmer," he rued. While companies can be prosecuted under the Essential Commodities Act, enforcement is rare and inconsistent. Experts said farmers will continue to pay the price for a broken system until laws are updated and penalties carry real weight.


Time of India
21-05-2025
- Business
- Time of India
Telangana's seed law may encounter Centre's roadblock
Hyderabad: Telangana's efforts to formulate its own seed legislation may face delays as the Centre recently advised the Haryana govt to hold off creating its own Seed Act. Haryana's seed law, which was passed in the assembly this year, aims to impose strict penalties on companies supplying spurious or low-quality seeds, but the Centre indicated that it would soon introduce amendments to the Central Seed Act of 1966. Haryana's law includes provisions for imprisonment of up to two years and fines of up to 3 lakh for such companies. In response to numerous complaints from farmers' associations regarding issues with spurious seeds, the Haryana govt had decided to bring in its own regulations. Under the 1966 Seed Act, however, the penalties for companies or individuals involved in producing or selling counterfeit, adulterated, or substandard seeds were minimal, with a maximum fine of only 500 for the first offence. A top Telangana govt official noted, "Under the Central (Seed) Act, companies bear no liability or punishment, and despite supplying fake seeds, states were prohibited from enacting their own laws." The Centre's argument was that while agriculture was a state subject, the Seed Act covers multiple states and involves all states; therefore, only the Centre could amend or create laws related to seeds. Sources privy to the developments stated, "We must explore alternative solutions to address these problems and will consider other means." Incidentally, Telangana had encountered a similar situation in 2017 when it attempted to formulate its own Seed Act, but the Centre urged the state to wait for forthcoming amendments.