11 months ago
FSII Study: Regulatory Friction Costs Seed Industry ₹800 Crore Annually
Imagine the seed industry is like a plant trying to grow.
But there are too many rules, like different states having different laws.
This study by FSII found that these different rules cost the industry a lot of money, over ₹800 crore a year!
The rules slow down innovation, waste time, and make it hard for companies to launch new types of seeds.
To fix this, the study suggests 'One Nation, One Licence' so companies don't have to deal with so many different rules.
This could save money and allow the industry to grow faster and create more jobs.
FSII study indicates regulatory friction costs the Indian seed industry over ₹800 crore annually.
The study suggests a 'One Nation, One Licence' system to streamline regulations.
Licensing and variety registration delays contribute to significant revenue losses.
Redundant testing protocols across states add to costs and hinder product launches.
Streamlining processes could boost R&D spending and potentially increase India's share of the global seed market.
- Who
- Federation of Seed Industry of India (FSII)
- What
- A study highlighting the costs of regulatory friction in the Indian seed industry and suggesting a 'One Nation, One Licence' system.
- Where
- India
- When
- Study conducted between February and March 2025, published September 29, 2025
- Why
- To address the financial impact of regulatory hurdles and streamline the seed industry.
Key facts
- Industry Value
- Over ₹30,000 crore ($3.6 billion)
- Annual Loss Due to Friction
- Over ₹800 crore
- Revenue Loss from Delays
- ₹290 crore annually
- Direct Regulatory Expenses
- Over ₹225 crore annually
- Survey Participants
- 55 member companies
- R&D Spending (Average)
- 10% of annual revenue
Quotes
FSII
The Federation of Seed Industry of India
“These insights spotlight how MSME-led, export-oriented, innovation-driven, and globally invested the Indian seed sector already is, while facing regulatory fragmentation and challenges that target all these growth engines, the FSII study said.”
thehindubusinessline.com
“The results show that regulatory friction costs the industry over ₹800 crore annually, with half due to delays and the rest split among direct compliance costs, state fees, and redundant testing.”
thehindubusinessline.com
