Seed Processing Business – Starting In India

How to Start Seed Processing Business in India


Seeds are essential ingredients for agriculture and farming purposes. The farmers who are into commercial farming mostly prefer processed seeds. Therefore, processed seeds do have a nice demand and market throughout the world. An individual can start a small-scale seed processing plant with a medium investment. Here in this post, let us explain how to begin a small-scale seed processing unit.

In the beginning, let us know the details of seed processing. Basically, the certified seed processing contains agricultural activity as well as processing operations under a license from the State Authority.

Basically, both the grain seeds and vegetable seeds are widely famous. And  seeds are the chief staple good grains globally. Hence, the production of these crops stands highest in quantity. Apart from these, the vegetable and fruit seeds stand in the second position in quantity.

A step-by-step guide to Seed Processing Business in India

Generally, in the organized sector, you can see two different types of seeds. One is known to be the certified seeds and the next one is processed and packaged seeds. When you plan to process the seeds under the certification of a Government agency, the seeds are certified seeds. However, even without any certification, it is possible to process and pack the seeds. In that case, you have to be careful regarding the seed parameters like moisture content or germination rate.

Advantages of Using Processed Seeds

Groundnut seeds
Peanut Seeds (Photo Credit: Pixabay)
  • The use of certified agricultural seeds is important to ensure higher agricultural production.
  • It is advantageous for uniform establishment and development of the crop.
  • Additionally, it improves the seed germination process. Even, the plants survive adverse conditions like more or extremely low moisture levels.
  • Finally, a certified seed improves the immune system in the plants. Therefore, it avoids the plants from diseases and even the spread of plant pathogens.

Starting a Seed Processing Business plant in India

Commonly, certified seed processing has two major tasks. One is the agricultural activity and the second one is a processing activity. Therefore, you should set up a plant near the cultivation land.

The area needed for the plant is determined on the basis of the seed type you want to produce and the quantity you desire. For instance, if you are willing to produce the paddy seeds, around 3000 sq. ft of the covered area is appropriate for the operation. Additionally, you should have some open to sky area near your factory.

Generally, you can run the seed processing plant with power provision. However, for continuous production, you should keep a diesel generator for backup.

Documents required to start Seed Processing Business plant

  • Form A
  • Identity Proof (Voter ID, Adhar card, Pan Card)
  • Authorization from company.
  • Treasure Challan Rs 1000/-
  • Location Map
  • C&F / rent agrement for 3 years.
  • (Seeds 0435 other Agriculture Services 501 Other services fees
  • 9904710 – License fees for fertilizer, pesicide & seeds)
  • TIN No
  • Mobile No
  • Details of seeds handled
  • Photo attested by Gezetted officer/notary
  • License from own & other state
  • Performance of seed (Field traial)
  • Company registation certificate with MOA
  • Dealer list.
  • Affidavit for bearing the loss due to poor quality of seed.

Business plan to start Seed Processing business

Seed Processing is a lucrative business to start once the owner knows the primary aspects of starting the business and the registrations including the various licenses mandatory to start the business. 

Registration, license, and permissions required to start Seed Processing Business in India

The registrations that must be essential to start an Seed Processing include-

  • Business Entity: The first registration for any business is to register it as a business entity by knowing about the form of the organization. It could be as a sole proprietorship or a partnership or a limited liability partnership or a one-person company. This will help in availing a few benefits to the business and must, therefore, be selected carefully before registering the business at the Registrar’s office.
  • FSSAI registration: Seed Processing is classified as the processing of food or food products and thus as per the definition requires an FSSAI registration. Food Safety and Standards Authority of India (FSSAI) is meant for protecting and promoting public health by regulation and supervision of food safety hence FSSAI is a mandatory registration/license for the business. The FSSAI registration process is entirely online and quite easy to follow, once the documents are ready. 
  • Shop Act or Trade License: Seed Processing business for example in Maharashtra, India requires applying for a Shop Act License from the local municipal authority to run the business. This license helps manage the working conditions along with working hours, leaves, wages, holidays, etc. of the employees and supports the business to run smoothly.
  • Udyog Aadhaar Registration: Seed Processing is categorized as a small business and hence it must be registered under Udyog Aadhaar which is a registration and recognition for MSMEs- micro, small, and medium enterprises. 
  • GST Registration: Every business, including the atta chakki, should associate with taxes at some point and for monitoring a single uniform taxation structure, the business should get a common GST number which stands for Goods and Service Tax.
  • BIS certification: Apart from these registrations the business should get BIS certification as well as tax liabilities. 
  • No Objection Certificate from State Pollution Control Board: Seed Processing doesn’t cause any pollution so no clearance is needed, however, it is recommended to check it with the State Pollution Control Board of the locality where the business is established.

Machinery required to start Seed Processing Business plant

Commonly, machinery is determined by the particular seeds that you want to process. However, here we have mentioned a few types of machinery needed.

Furthermore, you may arrange a seed processing plant in two methods. Either as semi-automatic or as fully-automatic. Definitely, a semi-automatic plant can be set up with less capital when compared to a fully-automatic plant.

  • Pre-cleaner
  • Seed Cleaner
  • Indent Cylinder
  • Specific gravity separator
  • Elevator up to 5 m height
  • Vacuum cleaner
  • Electronic moisture meter (Wet type)
  • Bag closer heavy duty
  • Weighing scale
  • Diesel generator set
  • Agricultural Activity

As a seed processing company, you must collect the breeder seed from the authorized research organization. After that, you have to increase the seeds for developing foundation seeds. And finally, you will obtain seed crops. And a government authorized certification agency should certify the seeds.

Seed multiplication needed huge land space for cultivation. If you don’t have the area, you can prefer contract farming with help from local farmers.

Steps in Seed Processing activity

Broadly, you can segregate the seed processing into several steps. As you obtain the seed into the processing plant, it is sent to the cleaning process or into storage so that it is stocked till processing is initiated.

Drying might be required. As processing begins, the first stage (conditioning and pre-cleaning) comprises debearding, scalping, shelling, or any other operation that is needed to make the seed flow easily.

The second phase (cleaning and grading) comprises the removal of inert materials, broken seed, weed seed, other crop seed, and that are larger or smaller than the required seed. Here, you will get the seed mass in the uniform size range of perforations of the top and bottom screen.

After attaining the desired purity, the seed enters the final processing stage of separation based on specific properties like length, weight, etc., and treating and finally packaging. Finally, store the processed seed for distribution and for selling into the market.

Investment required to start Seed Processing Business in India

Obviously, funding is a major aspect of any entrepreneur. And here comes the need for a customized business report. First of all, you should identify the demand for the specific type of seed by analyzing your proposed market. And accordingly, you should finalize the seed.

After determining the particular seed, you should craft a project report or business plan. The project report is essential in both cases if you apply for a loan or not. Basically, a project report is the outline of a business. And it also aids to commence the business in a clear way without getting any unwanted problems.

Generally, a seed processing plant business needs investment for obtaining the land and buying the machinery along with working capital. The business needs comparatively more working capital investment than other agro-processing companies.

Profit margin in Seed Processing Business in India

Initially the profit margin will be low and later after your product brand gets established because of quality the profits will be in higher range. You can expect 25-30% of profits in later stages. Better to start the business in small-scale. You need to provide quality product so that customers will have the trust and the production and profitability will be increased.

Conclusion of starting a Seed Processing Business plant in India

Seed processing promises a lucrative income in the agro-input industry. Besides that, the business opens various other avenues for growing the business extensively. That’s all folks about seed processing. With a proper business plan and marketing techniques, this business could be a huge profit venture. In case if you miss this: Real Ways To Make Money From Home.


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