NATIONAL SEED POLICY AND STRATEGIES
FOR THE NEAR EAST AND NORTH AFRICA
 A.J.G. van GASTEL & B.R. GREGG
IITA/GTZ Seed Project, P.O. Box 9698, Accra, Ghana; and
PO Box 1756, Starkville, MS 39760, USA

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1. INTRODUCTION

Governments have the responsibility to ensure adequate food supplies at reasonable cost for all citizens. Policies must stimulate the development of the agricultural sector, which it is the backbone of the economy in most developing countries. For maximum effectiveness at least cost to national resources, seed of improved varieties should be a major concern, especially in an era of rapid population growth, economic re-structuring and need for more cost-effective and efficient use of resources.

In the majority of the developing countries, in the past fifty years, policies emphasized the role of the public sector in building the seed supply pipeline, resulting in large government seed programs and parastatals, which provided seed to farmers at subsidized prices. The private sector was hardly involved in providing seed to farmers. More recently, due to the emphasis on re-structuring, policy emphasis shifted to the private sector as the main actor to produce and market seed for farming communities Government policy is to be confined to legislation, quality control, extension and variety development.

1.1 Status

How successful have we been so far? Have past policies and strategies been able to stimulate the development of sustainable seed industries?

The status of the seed industry in the Near East and North Africa (NENA) compares favorably with the situation in sub-Saharan Africa, but compared to South America and South East Asia, seed industries are not well developed in several countries.

The majority of arable, certainly marginal, land is still planted with unimproved varieties. For many crops improved genetic material is available, but dissemination is slow and in small amounts. Quantities of Breeder Seed and Foundation Seed are often insufficient and of relatively low quality and seed promotion and education are neglected. Quality control programs are not providing the expected services. In spite of all the current emphasis, participation of the private sector is still relatively limited for important, often self-pollinating, food crops. This is due to the fact that the private sector has been given the responsibility without being given the incentives and conditions necessary for effective investment and operation.

The situation can be summarized as follows.

In general, it can be concluded that policies and strategies pursued during the past 50 years have not led to a situation where the formal seed sector is successfully meeting the needs of resource-poor farmers for the important food crops. The percentage of seed supplied by the formal seed sector is still very limited, and the informal sector still plays a major role in the majority of the countries in the region.

This paper will discuss some policy and strategy issues. It does not intend to re-invent the wheel, and it appreciates that several policies and strategies, which are currently pursued, are serving the purpose of building the seed industry. However, some existing policies, especially those developed when economic infrastructure and emphases differed, should be replaced with new forward-thinking policies. These policies should meet the needs of the current and anticipated situation of increased private sector responsibilities and application of business management and operating principles to seed production and marketing.

2. NATIONAL SEED POLICY

A policy is a definite course of action selected from alternatives in the light of given conditions to guide and determine present and future decisions. A policy expresses the Government’s approach toward a certain issue. It is a guidance statement of intent and requirements. It does not focus on details; these are handled in regulations for implementation of specific laws. A policy establishes goals, directions, actions, responsibilities and roles in a form, which guide development and operation. Strategies are developed to adopt and implement a given policy.

A National Seed Policy deals with the seed industry’s role in agricultural development, food security and food self-sufficiency. What is the role of yield-enhancing seed in agricultural productivity and production and how can maximum benefits of improved seed be attained? A Seed Policy is the first and most important step toward an adequate and stable supply of high quality seed. It is the primary and cheapest input for a productive agriculture, which is able to achieve food security and self-sufficiency.

An effective National Seed Policy must deal with important issues that have an influence on the production and supply of high quality seed. It must be long-term (have the force of Law) and have—and continue to have—the power to influence and guide the production and supply of seeds. Any law, regulation or action of any agency, which impinges upon production, distribution and/or marketing of seed, must be in compliance with the National Seed Policy. The Policy’s influence should not be restricted to technical matters related to seed. For example, border custom control must not delay or interfere with timely shipment of seed into or out of the country.

A national seed council, or a comparable mechanism, with wide representation of the actors in the seed sector is essential to reach consensus and to help formulate policy and strategies for the future of the seed sector. Some countries in the region have a National Seed Board already composed and functioning. If no National Seed Board exists, other alternatives must be considered.

Some programs suffer from lack of continuity in goals for the seed industry and the policies and strategies to achieve them. Sometimes this weakness results from changes in government, but more frequently it is caused by changes in personnel and lack of structure to assure the needed continuity. One of the main advantages of a National Seed Board, if it is properly used, is that it provides a structure through which greater continuity of goals and policies can be achieved. Seed legislation, if carefully drafted, can also provide continuity of policies.

In the remaining part of this paper the following policy issues will be discussed: (a) the role of different actors, (b) liberalizing and privatizing the sector, (c) quality control, (d) the informal sector, (e) emergency and disaster relief, and (f) harmonization. Although important policy issues, such as (i) crop and seed research, (ii) testing and release, (iii) variety protection, (iv) credit for the seed industry, and (v) seed import and export are not discussed in this paper, they should be part of any comprehensive National Seed Policy.

Annex 1 includes a basic format for a "Model Development-Oriented National Seed Policy" which includes most of the essential elements. This was prepared as a guideline for countries of the region, not only to help them establish or complete effective Seed Policies, but also to promote uniformity among countries in Seed Policy, which is the first step toward regional cooperation and efficient seed supply.

3. ROLES OF MAIN ACTORS

The two main actors are the public sector and the private sector. Governments must focus on supporting roles (variety development, legislation, quality control, etc.) and creating a market for seed (extension promotion of farmer understanding of, and willingness to purchase, more expensive but higher-yielding seed). Government supporting roles are not limited to agencies involved in agriculture; tax, duty, traffic control, police, import/export, etc., also impact upon seed production and marketing and must also be subject to the influence of the National Seed Policy. The private sector’s role is to conduct market-responsive commercial operations of seed production and marketing. Today’s "buzz phrase" for re-structuring seed is "Government promotion must create a farmer market for seed; the private sector will then produce and distribute to satisfy this market".

Government must also carefully avoid competition with the private sector, as well as avoiding undue control or restriction of private sector business operations and response to market conditions. A clearly defined separation between these two roles must be maintained. At the same time, there must be close cooperation and mutual support between the two sectors.

4. LIBERALIZING AND PRIVATIZING THE SEED SECTOR

Past experience has shown that the private sector is more efficient at market-oriented commercial operations than are government "administration-focused" agencies. In view of the growing need to produce more from the use of increasingly scarce resources, today’s trend worldwide, is economic re-structuring, with Government withdrawing from commercial or market-oriented operations and leaving these to the private sector.

The agricultural sector has been one of the first areas re-structured. Most large general agricultural activities have now been privatized (food, grain, fertilizer) in the majority of the countries in this region.

The private sector is now also expected to take responsibility for producing and marketing seed and planting material to farmers. However, it must be appreciated that:

In fact, anything that affects agriculture—from weather to market prices—not only affects the production of seed, but also the ability of farmers to use and/or purchase seed.

Therefore, seed production and marketing is a high-risk, high technology, high cost business, with long recovery periods for investment. It is often a low profit business, and the seed sector is usually not the most attractive alternative for investment of private sector funds and efforts. Private sector investors are not easily willing to make large long-term investments unless they are assured that known and favorable conditions will prevail throughout the life span of the investment.

Effective liberalization and privatization of seed production and supply can, therefore, only take place if a strong, well-focused National Seed Policy creates business/economic conditions favorable to private sector investment in seed. The policy must remain essentially unaltered for the long-term. In several cases, re-structuring has only achieved Government withdrawal from seed production and supply, without significant subsequent takeover of responsibilities by the private sector, because of the lack of an adequate National Seed Policy and incentives for investment in seed.

To privatize the seed sector requires specific Government incentives to attract investment in seed production and supply. In too many cases, Government has provided inadequate incentives to attract the required private sector investment.

To create a favorable economic environment in which seed enterprises can operate efficiently, Government actions must include the following:

    1. Freedom from income tax.
    2. Freedom from business, sales and other taxes.

    3. Freedom from import taxes on necessary equipment and operating supplies.

    4. Freedom from taxes on land, buildings, vehicles and other real property used in the operations.

    5. Freedom from taxes on exports of seed produced above the national requirements or market demands.

    6. Special loans from Government, at low interest rates. For operating credit, seed stocks should be accepted collateral.

    7. Freedom to hire Government personnel, sometimes without the employee losing his Government retirement benefits.

    8. Government-supplied services, such as electricity and water, at concessional prices.

    9. Land for offices/factories in special Government-designated industrial areas, at reduced prices or no cost.

    10. Guaranteed freedom from competition by Government agencies, such as Government seed programs.

    11. Assistance from all Government Agencies, such as Agricultural Extension and Research.

    12. For foreign investments (either joint ventures or wholly-owned), freedom to repatriate earnings without taxation.

    13. Freedom from duty on the importation of inbred lines.

    14. Access to public varieties, as well as Breeder and Foundation Seed of varieties developed by the public sector.

Unfortunately, seed development in this region has not yet benefited adequately from such investment promotion programs.

Subsidies: Subsidies are contrary to present economic trends in which Government makes no investment, and the private sector conducts and finances market-oriented operations. Subsidies are not conducive to good business management of the private sector enterprises. If certain subsidies are deemed necessary for a healthy seed sector for essential basic crops, such subsidies should be given equally to both public and private sectors; it should be clear what is subsidized, and for how long. It should be relatively easy to withdraw the support.

However, investment incentives—not subsidies—are essential to attract cost-effective and well-managed private sector investment.

5. QUALITY CONTROL

Several seed quality control approaches are used in the world; the "Comprehensive Regulatory" and the "Truth in Labeling" systems are the most common. It is also widely accepted that in many developing countries, seed quality control systems are not strong and often lack adequate funding.

The "Quality Declared Seed" system, developed by an FAO expert consultation, is designed to provide a quality control system that is less demanding on government resources but is adequate to provide good quality seed to farmers. The proposed system leaves the responsibility for the quality with the producer (internal quality control), while government checks only a very limited part of the seed lots and fields (external quality control). This system may seem less efficient in terms of the guarantees that the government is able to give to the farmers, but it requires fewer government resources than the comprehensive regulatory system. By placing the responsibility on the producer and trader, a better appreciation of quality should develop. It should be accompanied, however, by increased government Extension promotion of seed to create a farmer market, and by specific legal responsibilities of the supplier to ensure the stated quality.

Government policy recognizes that planting value of seed depends on its quality; all activities shall make every effort to provide seed of maximum economically feasible quality. Government efforts must be focused on ensuring a stable supply of high-quality seed, while attracting private investment. All seed offered for sale should comply with all quality requirements, in all operations. Every seed producing entity must maintain its own internal quality control unit. Government should conduct realistic external quality control operations (Seed Law, Certification, service testing laboratories, etc.) required protecting both seed users and seed suppliers.

A realistic Seed Law is essential to ensure reliable standards of seed quality, protect seed users and suppliers, and develop a quality-oriented seed industry. Standards should not be inflexible. In emergency situations, and when the need arises, certain aspects of quality standards may be relaxed temporarily. Certification should be voluntary; seed that complies with Seed Law requirements may be freely sold.

6. INFORMAL SECTOR

What is the informal sector? The "informal seed sector" is not really a sector; it is more a term to describe the use of grain or unimproved seed as planting stock. The sector comprises all seed activities, which are not considered formal. Generally, the informal sector operates in areas, which are not served by the formal seed sector, as well as for crops for which no improved varieties exist. In such cases, farmers still need to plant seed; they may save their own seed or obtain the seed neighbors, local grain market, NGOs, etc. From a macro-economic point of view, this planting material is not the most cost-effective and its contribution to national food production is limited. In spite of the fact that in many marginal areas such seed may be the best option for the farmer, it is also often used because: (1) improved seed is not available; and/or (2) the farmer does not understand the benefits of improved seed.

In many developing countries there is strong resistance to supporting this informal seed sector, because the formal seed sector is much more effective in terms of rapid introduction of new varieties and widespread use of improved seed. Moreover, national and international variety development efforts are too costly to be used in the informal sector (few users are reached); only a formal seed sector will be able to make expensive new technologies widely available to farmers. Furthermore, support to the informal seed sector is often perceived as competition to the formal seed sector, and supporting the informal sector is detrimental to the development of a strong national formal seed sector. However, efforts in the informal seed sector should complement those of the formal seed industry and aim at areas where the formal seed sector does not reach or where the formal seed sector has nothing to offer. It is, furthermore, important to realize that the informal seed sector—if successful and properly supported—will gradually become part of the formal sector. Once we start supporting/developing the informal sector, it will develop and there will be a need for improved genetic material, quality, etc. In fact, in the majority of European countries the entire seed sector started informally, and developed into the current formal sector; the same will happen in developing countries. Therefore, support to the informal seed sector should ultimately lead to a strong formal seed sector and support to the informal seed sector is justified.

Although the National Seed Policy should emphasize the formal seed sector, the informal seed sector should not be neglected and governments should not discourage support to the sector. Furthermore, there is initially no need to strictly control the seed that is produced in this sector (quality control and certification). A participatory approach to plant breeding, as practiced by international centers such as ICARDA, should be supported, because it will assist the small-scale resource-poor farmers to raise production and standard of living. On the other hand, governments should help develop farmer quality-consciousness and understanding of the benefits of improved seed and genetic quality. They should encourage, where beneficial, the introduction of improved varieties from the formal sector into the informal sector. The Agricultural Extension Service should be strengthened and should strongly educate farmers in the benefits that improved seed can give to them. The ‘seed message’ should be more clearly included in all extension programs. Agricultural Extension staff themselves must be trained, able and willing to carry out this important role.

At the same time, government strategies should encourage the emergence of small private seed companies which will regularly supply these farming communities with quality seed of improved varieties and other essential inputs.

7. EMERGENCY AND DISASTER SEED RELIEF

Environmental conditions are quite erratic in the Near East and North Africa. Climatic variability, particularly variability in seasonal rainfall, can play havoc with crop production and lead to major breakdowns in food and feed supply. This is certainly the case in areas where rainfed agriculture is practiced. Apart from climatic vagaries of the region, national turmoil and regional conflicts (man-made disasters) often interrupt regular food and feed production. The combination of climatic variability and human conflict can often have catastrophic consequences, as witnessed recently in some areas.

Quality seed of improved varieties is an important agricultural input and unavailability of seed is one of the reasons why, under disaster situations, the normal cycle of food and feed production may collapse. Access to quality seed is important in ensuring the resilience of the production base, which provides the inherent capacity of a country to respond to, and mitigate the impacts of, a disaster. It is, however, remarkable that literature on national food security strategies generally does not elaborate on seed supply. Most important is that countries, certainly those prone to years of shortage of rainfall, are prepared for emergencies.

Emergency seed relief is not necessarily a part of a Seed Policy; rather, it is a part of other Government Policies. Immediate effects may be ameliorated by emergency seed relief, but is should be intended as a short-term remedy to production shortfalls and not become a long-term activity, interfering with developmental activities.

When emergency seed supplies are needed, Government Policy should be to seek first to purchase the needed seed from private sector producers and government distribution should not interfere with private enterprise marketing activities. This should also be the case if NGOs are assisting in emergency situations.

It should be kept in mind that free distribution of seed should be an emergency measure only and not continue after the cause has been removed. In many countries it has been shown that supplying free seed for longer periods, has a direct effect on farmers’ willingness to pay for seed at the later stage.

One successful method is to issue certificates to disadvantaged farmers, which can be redeemed for seed at a private sector seed enterprise. Government then pays the enterprise for the value of the certificates for which he has supplied seed.

Preparedness is the key word. A major part of any strategy for increasing seed security is having information available, which will allow quick action in cases of emergency.

Information is required on:

Data bases on the seed situation (including seed stocks) in each of the countries of the region, as well as a Geographic Information System in which various climatic and population information is linked with crops, and specific variety characteristics, are essential.

The strategy should also include:

8. HARMONIZATION AND LIBERALIZATION OF CERTAIN RULES AND REGULATIONS

Almost all country policies in the region are emphasizing the role of the private sector in the seed supply pipeline. The private seed sector in the NENA region is expected to take the lead. A private seed industry can, however, only successfully operate if it has access to the latest technology and if it can market its products in both a national and a regional market. National markets are often too small for profitable operation. To be able to have access to the latest technology and market products in a number of countries, liberalization and harmonization are important. A realistic approach to this is included in the World Bank Sub-Saharan Africa Seed Initiative (SSASI), which proposes eight ‘best practices for seed regulations’ in order to achieve effective participation of the private sector.

Market Entry: To ensure the emergence of domestic seed companies, as well as entry of foreign companies (regional and international), governments should allow companies to enter into the market based on simple criteria, without heavy requirements for investment (equipment) or specific conditions concerning trained staff, etc.

Introduction of New Varieties: To allow companies to move varieties regionally for testing and marketing, governments should allow companies and public institutes:

(a) to have access to varieties and germplasm from any source, and

(b) to introduce new varieties without waiting for official tests and approvals. Governments should allow voluntary variety registration. Compulsory registration, if at all, may be for a limited number of strategic crops. In any case ‘registration’ data from any source should be acceptable.

Seed Quality Control: Seed certification should be voluntary, because compulsory certification slows the introduction of new varieties. Voluntary certification also reduces seed cost to farmers, which is particularly important for low-overhead local companies producing low-value seeds of non-hybrid crops. Governments should enforce Truth-in-Labeling and spot-check seed that is sold in the market. Government should set minimum standards and offer seed quality control services (testing, certification) for free.

Seed Export and Import: To allow seed companies to produce seed volumes in countries of their choice and to move seed across borders to regional markets, Governments should allow companies:

(a) to import seed subject to realistic phytosanitary rules, tests, procedures only;

(b) to export seed without permits or quantity controls and with only those phytosanitary and quality tests determined by the importing country.

Retail Seed Sales: To allow development of marketing networks in low-volume seed markets, so that seed sales for small farmers are convenient, Governments should allow retailing of seed without registering with the Ministry of Agriculture.

Seed Producing Farmers: To allow competitive and efficient seed production, and to facilitate seed growing by small farmers, Governments should allow seed companies to contract seed production with farmers of their choice, without government registration, permission or screening.

Intellectual Property Rights: Governments should introduce legislation that allows breeders to register ownership of new varieties, but the sale of unregistered varieties should remain possible. Companies should have open and equal access to varieties developed by the public research. Public research should have a policy to sell germplasm.

Transgenic Plants: Laws and regulations should be established that allow: (a) sale of products from transgenic plants; (b) testing of transgenic plants; (c) introduction of transgenic plants; and (d) patenting of genes, etc.

Policies should emphasize the need for liberalization and regional harmonization of rules and regulations dealing with these aspects of the seed industry. New technologies can then be introduced rather quickly and varieties can move across borders without difficulty. Companies can sell seed in more than one country. This will attract private sector investment, as it allows an enterprise to produce enough seed to generate the profit required to pay costs and keep the business in operation.

9. CONCLUSION

Seed industries in several countries are still not sufficiently well developed in the Near East and North Africa region. An effective, up to date, realistic National Seed Policy, backed up by adequate strategies to adopt and implement the policy, will be able to improve the situation. Furthermore, it is important that government policies stress the importance of liberalization and regional harmonization.

Several governments have policies for the development of a sustainable seed industry, often with emphasis on the role of the private sector in production and supply of high-quality seed. However, adoption and implementation is lacking behind and realistic strategies are not really in place. The private sector does not (is not able to) play its full role in the production and supply of seed, certainly not for the important, often self-pollinating, food crops, because governments have not been able to create an environment in which the private sector can successfully operate (enabling environment). There is a need to implement policies, which support the private seed sector. Several seed rules and regulations must be liberalized and harmonized across countries of the region to speed up introduction new technologies and to make private seed supply more cost-effective.

Policies should not neglect the informal sector in those countries where this sector still plays a major role in provision of seed to farmers. Supporting the informal sector will ultimately lead to stronger formal seed sector.

10. REFERENCES

Anon. 1994. Harmonization of seed laws in SADC region: Report of a regional workshop, Harare, Zimbabwe. Commonwealth Secretariat, London, U.K.

Cromwell, E., S. Wiggins, and S. Wentzel. 1993. Sowing beyond the state; NGO’s and seed supply in developing countries. ODI, London, U.K.

Douglas, J.E. 1985. Alternatives to strengthen the seed sector in developing countries. Paper Presented at the Pan American Seed Seminar CIAT, November 25-29, 1985

Douglas, J.E. 1980. Successful seed programs: A planning and management guide. Westview Press, Boulder, Colorado, USA.

FAO. 1993. Quality declared seed; Technical guidelines for standards and procedures, FAO Plant Production and Protection Paper No 117, FAO, Rome, Italy.

FAO. 1990. FAO Seed Review. FAO, Rome, Italy.

Hort af Ornaas, A. 1992. Security in African drylands: Research, development and Policy. Uppsala University.

Kelly, A.F. 1989. Seed planning and policy for agricultural production. Belhaven Press, London and New York.

Louwaars, N.P. 1995. Regional cooperation in seed security in the West Asia – North Africa region. Consultancy Report, ICARDA, Aleppo, Syria.

Gisselquist, D., and J. Srivastava. 1995. Easing barriers to movement of plant varieties for agricultural development. World Bank Discussion Paper No 367. World Bank, Washington DC, USA.

Seed Unit, ICARDA. 1998. Seed security assessment in the drought-prone areas of West Asia and North Africa. Study prepared for the Office of Foreign Disaster Assistance Bureau for Humanitarian Response, United States Agency for International Development, February 1998. ICARDA, Aleppo, Syria.

Tripp, R. 1997. New seed and old laws; Regulatory reform and diversification on national seed systems. Intermediate Technology Publication, 103/105 Southampton Row, London, U.K.

Van Gastel, A.J.G., G.R. Manners, and J. Wadsack. 1997. Privatization of the seed industry in the West Asia and North Africa region. ICARDA, Aleppo, Syria and GTZ, Eschborn, Germany.

Wignell, A.O. 1988. Report on the status of the development of the FAO "Quality Declared Seed" System. In: Seed Production in and for Mediterranean Countries edited by A.J.G. van Gastel and J.D. Hopkins, pp: 106 – 121. ICARDA, Aleppo, Syria.

ANNEX

A MODEL DEVELOPMENT-ORIENTED NATIONAL SEED POLICY

This Model Development-Oriented National Seed Policy was developed for the WANA (West Asia and North Africa) and ECOWAS (Economic Community of West African States) or WASDU (West Africa Seed Development Unit) regions.

Provisions:

Article 1: Objective

Article 2: Force

Article 3: Implementation

Article 4: Applicability

Article 5: Notices and Rules

Article 6: Integration

Article 7: Quality Orientation

Article 8: Infrastructure and Sectorial Participation

Article 9: Private Sector

Article 10: Government Support and Initiation

Article 11: Government Seed Supply

Article 12: Multinational and Domestic Private Sector

Article 13: Crop Research

Article 14: Seed Research

Article 15: Variety Development, Testing and Release

Article 16: Stock Seed Maintenance and Supply

Article 17: Control of Varieties and Variety Ownership

Article 18: Seed Quality Control

Article 19: Field and Seed Standards

Article 20: Certification

Article 21: Seed Law

Article 22: Seed Testing

Article 23: Standardizing Seed Testing

Article 24: Seed Production

Article 25: Seed Conditioning and Ginning

Article 26: Seed Distribution and Transport

Article 27: Seed Use/Need Data and Statistics

Article 28: Seed Marketing

Article 29: Seed Extension and Promotion

Article 30: Credit for Farmer Seed-Users

Article 31: Credit for the Seed Industry

Article 32: Special Promotional Benefits

Article 33: Training and Technology Application

Article 34: Coordination and Cooperation

Article 35: Import and/or Supply of Equipment and Supplies

Article 36: Seed Import

Article 37: Seed Export

Article 38: Policy Advisory and Updating

Article 1: Objective

1.1. Recognizing the critical role of improved seed as a cost-efficient higher-yielding production input to reduce crop losses and production costs, increase agricultural productivity and yields, and improve economic efficiency of farmers, the Government of _________________ (hereinafter termed Government), acting under authority established by Law No. ____ of __________, herewith enacts this National Seed Policy of _______________ (hereinafter termed National Seed Policy).

1.2. Government recognizes that it has the responsibility, and herewith establishes its official policy accordingly, to achieve the following principles in support of agricultural and rural development and stable national food supply:

1.2.1. Government has the primary responsibility to ensure that adequate and timely supplies of high-yielding, high-quality seed of all crops are available to farmers at reasonable prices and appropriate times.

1.2.2. Government must play the lead support role, develop pilot operations, maintain public-service types of infrastructural and service support required to maintain efficient seed supply, create and demonstrate farmer demand for higher-yielding seed, and create an operating environment favorable for private-sector investment in seed supply.

1.2.3. To conserve Government funds and ensure maximum efficient service to farmers and consumers, Government shall encourage the private sector to conduct those seed supply operations suitable to private enterprise. The private sector shall be responsible for production, processing, distribution and marketing of seed for farmer planting.

Article 2: Force

2.1. This National Seed Policy shall be effective as of the date hereunder specified, shall have the force of Law as provided in Law No. ________ of __________, and all parts hereof shall continue in force indefinitely, until specifically modified by Ministerial Decree under provisions of this Policy and the said Law No. _____________ of __________.

Article 3: Implementation

3.1. To implement this National Seed Policy, Government shall, as of the date hereunder indicated, begin to establish and bring into effective operation the following activities, where such are not already in effect:

3.1.1. Establish and operate the "Seed Industry Development Office" or office of similar function with other appropriate name, within the Ministry of Agriculture. This Office shall provide direct support, guidance, and assistance to any and all private-sector agencies interested in, and/or participating in, any activity of the seed industry. It shall serve as a focal point for providing assistance available from other agencies, and in cooperating and coordinating activities and obtaining support for the private sector. It shall impartially assist in development of the private sector, equally assisting any agency which participates, or desires to participate, in any component of the seed industry and/or its supporting infrastructure. It shall also issue at reasonable intervals a Directory of the Seed Industry.

3.1.2. Modify and/or amend such laws, regulations, decrees and other official acts which provide special investment incentives, freedoms, and rights to agencies which invest in any other government-specified priority activities and/or export-oriented activities, so that such benefits are available to private-sector firms in the seed industry.

3.1.3. Actively seek to encourage, support and promote private-sector investment in the seed industry.

3.1.4. Cooperate with and support private-sector seed production, supply, export and other operations.

3.1.5. Establish, conduct and maintain those corollary and support components and activities of a public-support nature which are essential for efficient supply of improved seed. Such components and activities shall be organized in a manner appropriate for efficient operation, adequately funded, and operated in accordance with international standards and norms for such activities.

3.1.6. Ensure that no Law or regulation, in any area of activity or Government responsibility, interferes with, delays or hampers the production, supply, import or export, of high quality seed.

Article 4: Applicability

4.1. To maximize supply of higher-yielding seed to farmers, Government herewith establishes this stable, consistent, long-range National Seed Policy, and shall guide and conduct all future seed-related operations under the conditions established herein. All activities related to production and supply of seed, corollary and supporting operations thereto, and components thereof, conducted by Government agencies and/or the domestic and/or international private sector, conducted wholly or in part within the national territory, shall be governed by the provisions of this National Seed Policy.

This National Seed Policy shall guide the content, meaning and intent of all provisions of all Laws which affect activities relating to seed, including Laws on tax, duty, import/export, traffic control, etc. All Government officers at all levels shall, under the implementation of any Law (except plant quarantine) in no way delay, impede or interfere with the use or movement of seed for planting purposes, under penalty of severe action including dismissal.

Article 5: Notices and Rules

5.1. To ensure timeliness and effectiveness of applicability, the Minister of Agriculture shall, as deemed necessary and in the best interests of national agriculture, farmers and seed industry, issue modifications and rules under this national Seed Policy after due public notice in accordance with official procedures. Such rules and modifications shall become a part of this National Seed Policy and shall appropriately affect its implementation, but shall not change its long-term intent of support, development, improvement and encouragement.

Article 6: Integration

6.1. This National Seed Policy shall become a part of, and shall operate in support of, overall National Development Policy and National Agricultural Policy. However, as it is in the national interest to maximize private-sector seed supply, where the National and Agricultural Development Policies conflict in operational details of this aspect of private-sector participation, this National Seed Policy shall predominate, provided that ultimate goals of operations hereunder shall fit into the objectives of the National and Agricultural Development Policies.

Article 7: Quality Orientation

7.1. Government recognizes that planting value of seed depends on its quality, as measured by established quality-control procedures. The focus of all seed activities shall be to provide the highest-quality seed (including genetic, physical, physiological, and phytosanitary quality components) which is economically feasible. To ensure maximum benefits to farmers and consumers, all seed offered for sale shall comply with all applicable quality requirements, and all seed operations and activities shall make every effort to provide seed of maximum quality. It is expressly understood that quality standards are not inflexible, and that as the seed industry and its technology develop, standards shall be expected to rise in order to provide improved service to farmers. In emergency situations, certain aspects of quality standards which do not affect genetic quality may be relaxed temporarily.

Article 8: Infrastructure and Sectorial Participation

8.1. Government recognizes that a complex technical/industrial/economic infrastructure is required to maintain a continuing flow of high-yielding seed of improved crop varieties. Government shall make every effort to ensure that all essential infrastructural components are established and operated in the manner most beneficial to national agricultural and economic development. Participation of both Government and private sector are required to ensure efficient use of funds and national resources, while providing the most effective service to agriculture. It shall be the responsibility of each sector to conduct those essential activities in which it is most competent, in close coordination with other activities/components and participating agencies. In general, activities/components of a public-service nature which normally require some form of subsidization shall be conducted by Government and its subsidiary organizations. All activities/components of a commercial, market-responsive nature, and in which the private sector is willing to invest in such as manner as to serve efficiently all or part of such national needs, shall be the responsibility of the private sector, and Government shall ensure that its agencies do not generate competition to such private-sector operations.

Article 9: Private Sector

9.1. Government recognizes the important role of the private sector in certain aspects of seed supply, and in providing required seed at minimum Government expense and minimum cost to farmers. The private sector is expected to play a major role in seed supply, and Government shall provide all possible support, as specified herein or established hereunder.

Article 10: Government Support and Initiation

10.1. It is the responsibility of Government to establish pilot operations, initiate development, and ensure that essential activities/components are established and operated as required. As the private sector develops the capability to provide the needed activities and high-quality seed, Government agencies involved in such activities shall reduce their operations correspondingly, so as to avoid direct competition with the private sector while ensuring that all farmers who need such seed are properly supplied. To maximize participation by the private sector and thereby reduce government expenditures, Government shall provide the maximum support to the private sector permitted by applicable laws. Where necessary and as possible, Government shall actively seek to modify and/or amend appropriate laws and regulations in order to encourage maximum private-sector seed supply.

Article 11: Government Seed Supply

11.1. Government's first responsibility is to ensure that adequate stocks of high-quality seed of improved varieties are provided to farmers, to ensure production of the required food, feed and fiber. Government recognizes that seed production of some crops does not meet the criteria for investment by the private sector. Government organizations shall produce the amounts and kinds of such seed as are required to ensure that farmer needs are met, when such seed are not provided by the private sector. However, Government shall not competitively produce seed of any kind supplied by the private sector. As the private sector develops the capability to produce and supply seed of such additional crops as are required and is actively supplying such seed, involved Government agencies shall appropriately reduce or terminate their supply of such seed kinds, in order to prevent Government-subsidized competition and to conserve Government funds.

Article 12: Multinational and Domestic Private Sector

12.1. Multinational private-sector seed firms can benefit the seed industry with new genetic materials and technology in addition to seed supply, but sometimes do not supply specific local needs, which may be best-supplied by local domestic seed firms, including some crop seed of lower profit. For maximum technology development, operating and cost efficiency and supply of seed needs, both multinational and wholly-national seed firms shall be encouraged and supported equally.

Article 13: Crop Research

13.1. The base of seed supply is to give farmers improved materials developed by research, in a form which can improve their crop yields. As many aspects of crop research are non-profit public-service-type operations, it shall be the responsibility of appropriate Government agencies to conduct such research. However, some aspects of research directly support profit-generating seed supply operations, and certain private-sector firms can and may conduct such research to the benefit of the nation's agriculture. Any qualified private-sector agency shall be permitted, encouraged and supported in conducting such research. Research results and solutions developed by Government agencies shall be freely available to, and exchanged with, the private sector.

Article 14: Seed Research

14.1. Research in seed science, technology and industry are essential to improve and maintain quality and cost-efficiency. Government has the primary responsibility to ensure that such research is conducted, with primary focus not only on basic research but also on adapting basic research and developing solutions to fit local needs of seed development and supply. Private-sector firms which can conduct such research are also encouraged to do so. Research results and solutions developed by Government agencies shall be freely available to, and exchanged with, the private sector. Measures to improve coordination among various seed industry operations shall include established ongoing means of bringing together seed industry participants to identify needs for seed research and to exchange data.

Article 15: Variety Development, Testing and Release

15.1. To ensure release of superior materials as new varieties and hybrids are developed, it is essential to test them under conditions similar to those under which farmers will grow them. Such testing is a public-service activity, and shall be conducted by Government, in accordance with specified procedures and for a period of time adequate to ensure correct identification of improved lines.

15.2. Varieties/hybrids developed by the private sector may be included but are not required to be included, in Government-conducted trials and research, and shall be considered solely on their merits. Such varieties and hybrids which qualify shall be freely-included on any recommended or otherwise officially notified lists of crop varieties, and shall be eligible for Certification. As improved varieties are of benefit to farmers, no charge shall be levied against any private-sector breeder for including a specified number of materials in test trials.

Article 16: Stock Seed Maintenance and Supply

16.1. Maintenance and supply of stock (Breeder, Foundation, Registered, etc.) seed of improved varieties and hybrids is the responsibility of the agency which develops the variety/hybrid. Within Government breeding programs, a special agency shall be established with adequate staff/facilities/budgets to ensure timely supply of the required amounts and kinds of seed. Government-produced Foundation and/or other stock seed shall be freely allocated at reasonable cost to qualified private-sector agencies upon request, as and when it is available and in accordance with established requirements for variety control. Every effort shall be made to produce stock seed adequate to meet all appropriate requests. Private sector agencies may make advance requests to ensure allocation of such seed, through appropriate channels established therefor.

Article 17: Control of Varieties and Variety Ownership

17.1. Considerable expense is involved in developing an improved variety, even though the ultimate benefit derives to farmers and the national food supply. To encourage variety development research and permit recovery of development costs, appropriate laws and/or regulations shall be established to permit the breeder/developer to control seed production/ supply of his varieties so as to benefit financially from his development investment, while serving the needs of farmers and the nation's agriculture.

Article 18: Seed Quality Control

18.1. Adequate control of seed quality requires constant supervision, checking, inspection and testing. To ensure effective quality control, every seed program is encouraged and shall be assisted by Government to maintain its own internal quality control unit, operating in accordance with internationally-established procedures. In addition, Government shall appropriately maintain and conduct those external quality control operations (e.g., Seed Law, Certification, service testing laboratories, etc.) required to protect both seed users and seed suppliers.

Article 19: Field and Seed Standards

19.1. To ensure high seed quality and operating cost-efficiency, quality control of both seed fields and seed lots is necessary. Standards for different categories of seed production fields and seed lots shall be established, to the extent possible in compliance with international norms, but in all cases achieving a balance between the needs of farmers for high quality vs. realistic production capabilities under current agro-economic conditions. It is recognized that standards are flexible and can be improved as technological, operational, and infrastructural developments permit; when emergency conditions require, standards which do not affect genetic quality can be lowered temporarily.

Article 20: Certification

20.1. As a means of helping develop a quality-oriented seed industry and achieving high seed quality, functionally-independent seed Certification shall be developed, and all seed agencies encouraged to participate to the fullest extent. Certification, in standards, procedures, concept and methodology, shall comply with internationally-recognized norms.

20.2. While Certification of all seed produced and marketed is recommended, it shall not be compulsory. Seed which complies with Seed Law requirements may be freely sold without Certification. Further, disclosure of parentage of proprietary varieties/hybrids shall not be required in order to enter them into Certification.

Article 21: Seed Law

21.1. A realistic Seed Law which reflects current requirements, constraints and capabilities is essential to ensure reliable standards of seed quality, protect seed users and suppliers, and develop a quality-oriented seed industry. Government shall seek to establish and maintain current a Seed Law which reflects policy and overall measures in the long-term, with day-to-day and operating details established through Ministerial Decrees. An adequately equipped/staffed/ funded implementation agency shall be maintained, and all seed offered for sale shall be subject to requirements of the Seed Law. Under the Seed Law, a regular sampling and testing program shall be conducted.

Article 22: Seed Testing

22.1. Rapid, reliable and accurate tests of seed quality are essential to the conduct of the seed industry. Government shall establish and maintain a network of official seed testing laboratories in locations adequate to permit samples to be delivered to a lab within 24 hours after sampling, physical tests completed and germination testing begun within 24 hours after the lab receives the sample, and test results to be reported within 24 hours after completion of the germination test. These labs shall be adequately equipped and staffed with trained qualified analysts, and all operations conducted in full compliance with recommendations of the International Seed Testing Association (ISTA).

22.2. Each seed program, public or private sector, shall be encouraged and assisted in establishing and maintaining an adequate testing laboratory in accordance with international standards, as part of its internal quality control program.

Article 23: Standardizing Seed Testing

23.1. Reliable, repeatable seed testing results are essential for orderly seed supply and development of the private sector and seed export/import. To ensure standardized procedures and repeatable test results, a national referee seed testing and analyst training program will be established and maintained by Government as a public service.

Article 24: Seed Production

24.1. Seed production shall be organized and conducted to achieve the highest seed quality and operating cost-efficiency, recognizing that the objective of seed supply is not to build programs but to supply higher-yielding seed to farmers. The private sector shall be encouraged and supported to produce the maximum possible part of seed required for farmer use. Government shall produce only those seed kinds which are required but not supplied by the private sector. As much as possible, Government seed production shall be under contract with private farmers who shall be paid, guided, supported and supervised in a manner which helps them develop financially, in use of technology, and in their ability to organize and apply improved seed and crop production technology and to become self-sustaining private-sector seed operations.

Article 25: Seed Conditioning and Ginning

25.1. As an essential seed supply operation, conditioning shall be developed in such a manner as to provide the needed services most efficiently for the seed supply system and seed-using farmers. A national strategy shall be developed and followed to ensure that conditioning is established and conducted so as to provide the best service. Conditioning facilities and operations shall be complete, adequate, cost- and time-efficient, coordinated with handling/ receiving/storage, and conducted so as to obtain maximum benefit from its capability to improve seed quality. All seed agencies, Government or private sector, shall be encouraged and assisted to develop and maintain their own up-to-date, efficient seed conditioning facilities. Government, to the maximum extent possible, shall provide conditioning services to small or new seed operations on a fee basis, to assist in developing the seed industry. Government shall establish concessional credit and import systems to help establish and maintain up-to-date adequate conditioning facilities.

Article 26: Seed Distribution and Transport

26.1. Government shall encourage and support the establishment and operation of a distribution system, and separate individual distribution systems and networks, which make higher-yielding seed available to all possible farmers in all crop production areas, within their zone of mobility. To the maximum extent possible, private-sector merchants shall be utilized in the distribution system. Government shall make available at no cost, designs for safe seed storages of different capacity, suitable for different levels of the distribution system. Government shall also make available at no cost, designs for safe seed transport vans and vehicles.

Article 27: Seed Use/Need Data and Statistics

27.1. Correct, detailed up-to-date data on seed use and planned needs are needed by seed suppliers to plan production and distribution; seed-using farmers also need such information on seed availability. Government shall establish and maintain a system to collect and disseminate such information on a current timely basis, so that it can support management and decision-making by seed suppliers and users. Government shall also support and encourage development of management information and data systems suitable for use by seed programs/ firms to improve their management and operating efficiency.

Article 28: Seed Marketing

28.1. Marketing, as the means of promoting farmer acceptance and use of higher-yielding seed, is encouraged and Government shall do its utmost to support and coordinate honest, effective and intensive marketing efforts in both government and private sectors. This shall include, but not be limited to, assistance in marketing campaigns, developing promotional methods and materials, emphasizing seed in agricultural extension and farmer training programs, etc.

Article 29: Seed Extension and Promotion

29.1. As a primary means of educating farmers in acceptance and use of improved technologies, extension promotion of higher-yielding varieties and seed shall be developed, promoted and maintained by Government to the maximum extent. Such promotion shall include improved seed and varieties without regard to origin or supplier.

Article 30: Credit for Farmer Seed-Users

30.1. Government shall establish and maintain crop production credit for farmers which includes credit for purchase of higher-yielding seed. Such credit shall permit the farmer to select the supplier from whom he buys his seed, without distinction between government and/or private-sector suppliers.

Article 31: Credit for the Seed Industry

31.1. Government shall ensure availability of credit for seed industry firms, at concessional rates which promote investment in seed supply. Such credit shall be available for financing capital expenditures, operating expenses, and seed inventories. Collateral requirements shall be minimized.

Article 32: Special Promotional Benefits

32.1. In order to encourage private-sector seed supply, private-sector agencies which invest in a specified manner in seed supply activities shall be eligible to receive such incentives as tax exemptions, import and export privileges, special-rate loans and financing, guaranteed repatriation of profit, etc., as are offered by any government agency and/or law, to promote investment in any identified priority area.

Article 33: Training and Technology Application

33.1. Production and supply of higher-yielding seed requires practical application of high technology in all activities, under farmer conditions. Development, transfer, application, and training in appropriate up-to-date technology shall be actively supported and pursued by Government. Such improved technology shall be freely available to any government or private-sector agency involved in the seed industry. Such technology shall include but not be limited to research developments, training courses, conferences, meetings, publications, bulletins, manuals, etc. Any private-sector seed industry firm shall be equally eligible for its staff to participate in any Government-conducted or sponsored seed-related training program, and shall have free access to seed- and crop-related training, publications, data, etc., developed by Government agencies. Private-sector seed agencies shall have unrestricted eligibility to hire Government seed personnel and specialists. All Government agencies which participate in such activities and/or have the technical competence to provide any required support and assistance, shall provide all possible technical support and assistance to any Government and/or private-sector seed industry agency which has need of such support.

Article 34: Coordination and Cooperation

34.1. To ensure efficient operation and minimize the required investment and use of national resources, Government shall ensure that Government and private-sector agencies cooperate and work toward the common goal of improved agricultural efficiency, and that competition to the private sector in specific activities shall not be generated by Government organizations. Such coordination shall include, but not be limited to, regular seed industry conferences, newsletters, bi-sectorial advisory committees, regular exchange of information, training programs, seed trade and/or technical associations, etc.

Article 35: Import and/or Supply of Equipment and Supplies

35.1. It is recognized that it is most efficient to import certain equipment and supplies required by seed operations. Government shall minimize or eliminate tax, duty and/or restrictions on such essential imports, and shall expedite procedures so that such commodities may be quickly and economically imported. Any other restrictions, such as re-export of such commodities, shall also be waived in order to promote efficient seed supply.

35.2. When domestic manufacture and supply of such equipment and supplies is possible and economic in the service of the national seed industry and possible export, Government shall encourage and support to the maximum extent such domestic manufacture and supply, and establishment of joint ventures, licensing agreements, etc. Provided that, such manufacture and supply shall be in compliance with internationally-recognized procedures for protection of patents, copyrights and other applicable forms of intellectual property rights, so that the nation's standing in the international community shall be maintained at a high and respected level.

Article 36: Seed Import

36.1. From time-to-time, stock seed must be imported for research and development purposes which are ultimately in the best interests of national agriculture. Import of some seed, at some times, for use by farmers is also in the national interest. All possible Government assistance shall be provided to any Government or private-sector agency which requests import clearance of such seed, within procedures specified in appropriate regulations established hereunder. Administrative procedures required shall be minimized so delays do not occur. Only normally-applied seed quality standards and internationally-recognized plant quarantine standards shall be required. All possible assistance in expediting shipment, clearances, currency exchange, letters of credit, etc., shall be provided so as to expedite movement. The "Seed Industry Development Office" established under provisions of this National Seed Policy, shall serve as a focal point of support and assistance.

Article 37: Seed Export

37.1. Local climate and agro-economic conditions are, or may be found to be, ideally suited to produce high-quality seed of some special and/or labor-intensive crops. Production of such seed for export, either in excess of domestic needs or specifically for export, increases farmer income and supports national economic policy, exports farm labor, and earns foreign exchange. Government shall provide to domestic and multinational private-sector agencies producing seed for export, all officially-provided incentives and supports available to other promoted and/or export-oriented activities. Administrative procedures required shall be minimized so delays do not occur. Only normally-required seed quality standards and internationally-recognized plant quarantine standards shall be required. All possible assistance in expediting shipment, clearances, currency exchange, letters of credit, etc., shall be provided so as to expedite movement. The "Seed Industry Development Office" established under provisions of this National Seed Policy shall serve as a focal point of support and assistance.

Article 38: Policy Advisory and Updating

38.1. To keep this National Seed Policy current and applicable to changing conditions, a National Seed Advisory Committee shall be established, with membership from representative agencies of both Government and the private sector. This Committee shall meet regularly, deliberate on all factors affecting seed supply and use, and advise the Minister directly on policy modifications needed to keep policy current and supportive. The Minister shall consider such recommendations, discuss them as appropriate, and in accordance with applicable laws, issue modifications in the National Seed Policy to improve its suitability and applicability to current conditions without changing its long-term intent and validity.

ISSUED this ______ day of ________, 19___.

_________________________________

MINISTER OF AGRICULTURE

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