The document discusses factors that affect the pricing of seeds, including the costs of seed production, existing seed prices, and ensuring adequate farmer income protection. Seed pricing is determined by calculating production costs like cultivation, productivity, and benefits per kg. The government and private sector both play roles, with the government finalizing breeder seed prices and states setting foundation and certified seed prices. Objectives of seed pricing are to encourage improved variety usage, provide incentives for sufficient supply, and develop private distribution. Costs like cultivation, certification, storage, transportation, and losses are considered.

1. DETERMINING THE PRICE OF SEED
SUBMITTED BY – SUMAN KUMAR DEY
REG NO – 1541901164
GRP-2

2. Seed pricing
• FOR PRICING ,COST OF THE SEED PRODUCTION
WHICH INVOLVES THE COST OF CULTIVATION
,PRODUCTIVITY , EXISTING PRICE OF SEED , AND
OTHER INDIRECT FACTORS AND BENEFIT
REQUIRED AT PER KG SEED ARE CALCULATED.
• THE MAIN AIM OF PRICE DETERMINATION IS TO
PROTECT THE FARMERS BY GUARANTEEING A
SECURED INCOME FOR THEM.

3. Involvement Of GOVT And Private
Sector
• AT PUBLIC SECTOR , PRICE OF BREEDER SEED IS
FINALIZED BY DIVISION OF SEED , DEPARTMENT
OF AGRICULTURE AND CORPORATION ,
MINISTRY OF AGRICULTURE , GOVT OF INDIA IN
CONSULTATION WITH INDIAN COUNCIL OF
AGRICULTURAL RESEARCH ,NEW DELHI.
• THE PRICE OF FOUNDATION AND CERTIFIED
SEED IS FINALIZED BY THE STATE GOVT. THE
GOVT. PROVIDES INCENTIVES TO THE SEED
PRODUCERS TO SUPPLY SEEDS IN SUFFICIENT
QUANTITY.

4. Objective of seed pricing
SOME OBJECTIVES IN SEED PRICING COULD BE:-
1. TO INDUCE FARMERS TO USE CERTIFIED SEEDS
OF IMPROVED VARIETIES IN ORDER TO
INCREASE NATIONAL INCOME.
2. TO PROVIDE ADEQUATE INTENSIVES TO SEED
PRODUCERS TO SUPPLY SEED IN SUFFICIENT
QUANTITY TO MEET THE DEMAND.
3. TO ENCOURAGE THE DEVELOPMENT OF
PRIVATE DISTRIBUTION CHANNEL.

5. FACTORES AFFECTING THE SEED
PRICING
• COST INVOLVED IN CULTIVATION IS A MAJOR FATOR OF
DETERMINATION OF THE PRICING OF THE SEED .
• ANALYSIS FOR COST OF CULTIVATION INVOLVES DIRECT
AND INDIRECT COSTS-
DIRECT FACTORS:-
1. FIELD PREPARATION
2. SEED
3. SEED TREATMENT
4. SOWING
5. IRRIGATION
6. WEEDING
7. INTER CULTURE OPERATION
8. PLANT PROTECTION

6. 9. ROUGING
10. FIELD WATCHING
11. HARVESTING
12. POST HARVEST
13. PROCESSING
SOME INPUTS SUCH AS FERTILIZERS AND INSECTICIDES
REMAIN VARIABLE WHILE LAND AND FARM INFRA
STRACTURE ARE FIXED.
INDIRECT FACTORS:-
FOLLOWING FACTORS ARE INVOLVED COST IN SEED
PRODUCTION-
1. COST INVOLVED IN CERTIFICATION
• REGISTRATION
• FIELD INSPECTION

7. • SEED TESTINNG
2. COST INVOLVED IN STORAGE AND PACKAGING
• COST OF PACKAGING MATERIAL
• PACKAGING CHARGES
• STORAGE CHARGES
3. COST INVOLVED IN TRANSPORTATION
OTHER INDIRECT FACTORS-
• HANDELING COST
• PROMOTION-ADVERTISEMENT
• MARKET FEE
• WHOLE SELLER’S /DEALER’ COMMISSION

8. • RENT OF THE LAND FOR REQUIRED PERIOD
• LOSSES DURING POST HARVEST , TRANSPORTATION
AND STORAGE
OTHER FACTORS :-
1. DEMAND OF THE SEED
2. MARGIN OF PRFIT
3. SEED RATE
4. PROTECTION OF THE VARIETY

9. EXAMPLE FOR DETERMINATION OF COST
OF CULTIVATION
• DIRECT COST INVOLVED IN SEED PRODUCTION
1. FIELD PREPARATION(BY TRACTOR)
> CROSS CULTIVATION- 4HRS@ 220/HR = ₹ 880
> CROSS DISKING- 3HRS@ 220/HR = ₹ 660
> PLANKING- 1HR@ 220/HR = ₹ 220
2. STABLE COLLECTION( BY MAN )- 5 MEN @140/HR = ₹ 700
3. INPUT
>FERTILIZER AND FYM –BY 3 MEN @140/HR & (4 TON UREA
@550/TON+2.5 BAGS MOP485/BAG + 1.75 BAGS DAP @ 66/BAG
= ₹ 3949
> SEED AND SEED TRATMENT @₹ 9080

10. > SOWING (BY MEN) -3HRS @ 220/HR + 1 LABOUR @140/HR = ₹
800
4. INTERCULTURAL OPERATION
>IRRIGATION+ WEEDING+ HOEING+ PLANT PROTECTION+
ROGUING+ FIELD WATCHING = ₹ 14620
5. PLANT HARVEST HANDLING
>HARVESTING+ LIFTING + THRESHING+ WINNOWING+ DRYING+
PROCESSING+ HAND PICKING+ SEED
TREATMENT(THIRAM+BAVISTIN)+ FUMIGATION= ₹ 14610
SO, TOTAL DIRECT COST = ₹ 45519
• INDIRECT COST INVOLVED IN SEED PRODUCTION
PACKAGIING

11. TRANSPORTATION
PROMOTION
CERTIFICATION FEE
MARKET FEE
COMMISSION
WHOLE SELLER’S
DEALER’S
RETAILER
INTEREST ON COST INVOLVED WITH INPUTS
LOSSES

12. PRICING AT GOVERTMENT SECTOR
• PRICES OF CRRTIFIED SEEDS MARKETED BY THE PUBLIC
AGENCIES ARE ANNOUNCED BY THE GOVERTMENT.
• THE GOVERNMENT FIX THESE PRICES BY KEEPING IN MIND
THE COST OF PRODUCTION.THE COST OF PRODUCTION OF
CERTIFIED SEEDS IS HIGHER THAN THE COST OF
PRODUCTION OF GRAINS
(15-20% FOR SELF POLLINATED CROPS , 40% FOR HYBRID
SEEDS.)
• THE NATIONAL SEEDS CORPORATION IS THE LEADING
AGENCY IN SEED MARKETING. STATE AND PRIVATE TRADERS

13. SET THEIR PRICES IN RELATION TO THE PRICE FIXED BY
NATIONAL SEEDS CORPORATION.
• NATIONAL SEEDS CORPORATION REVISES THE PRICES OF
SEEDS AFTER TAKING THE MARKET SITUATION INTO
ACCOUNT.
• THE PRICE OF ORDINARY QUALITY SEEDS ARE TEND TO BE
ONLY MARGINALLY HIGHER THAN THE GRAIN PRICE.
• HOWEVER THE PRICE OF IMPROVED AND HIGH YIELDING
VARITIES TEND TO BE MUCH HIGHER THAN THE GRAIN
PRICE.

14. THE END