Seed Marketing - 1 | Agriculture Optional Notes for UPSC PDF Download

A definition of seed marketing

The goal of seed marketing is to meet the farmer's demand for a dependable supply of various improved seed varieties that are of guaranteed quality and reasonably priced.

• To retailers in the agricultural sector, it means selling seeds in combination with other farming inputs to the farmer.
• For the farmer, it is essentially the sale of the seeds they produce on their own farm. Regardless of the situation, a well-defined series of steps must be followed to promote the product, ensuring it is available at the right place, time, and price for a successful sale to occur.
• Marketing is not limited to advertising and selling goods; it encompasses activities that begin before the goods are even created and continue long after they are sold. To achieve success in the marketing process, it is essential to satisfy the farmer-consumer's needs and fulfill the seed company's objectives.

Marketing Structure

Seed distribution systems

Seed distribution systems can be operated by various entities, including government, public sector agencies, cooperatives, and the private sector, often involving a combination of these.
There are several channels for seed marketing:

• Direct Distribution:
  • The seed producing organization directly supplies the farmer.
  • Key characteristics include direct interaction with consumers, high-level service and customer support, control over product quality, and the potential for high fixed costs if a sales force is employed.
  • It requires a responsive management structure and well-motivated staff, but there may be resistance to change within a large direct sales organization.
  • This system relies on a wide product range or high-value products like horticultural seeds to generate sufficient revenue.
• Single Level Distribution:
  • The seed producing organization supplies the farmer through independent retail outlets.
  • It depends on the retailer for consumer contact, requiring strong service and support from the supplier.
  • Effective administrative control and a well-organized distribution system are essential.
  • Product quality at the retail level must be monitored, and the supplier relies on the retailer to make the final sale.
• Multilevel Distribution:
  • The seed producing organization supplies national distributors, wholesalers, or regional distributors, who, in turn, provide seed to sub-distributors or retail outlets.
  • This system lacks direct consumer contact, so it relies on strong product promotion.
  • Timely seed availability at the retail level is crucial.
  • Monitoring sales and obtaining consumer feedback are part of effective management.
  • Distributors may focus on the most popular product lines.

In less developed areas, national distributors may not be available, and seed producers may have to supply seed to regional wholesalers or distributors.

Sources of seed available to farmers 

Farmers have various sources to obtain seeds, including:

• Direct Sales: Farmers can purchase seeds directly from seed producers through central seed stores and their supply points.
• Farmer Producers: Farmers who have seed production contracts are authorized to supply seeds to other farmers in their designated area.
• Cooperatives: Cooperatives can function as both farmer producers and input suppliers to their members.
• Farmer Dealers: Some farmers act as dealers and supply seeds to their neighbors, which can develop into a well-structured system.
• Commission Agents: These intermediaries work directly with producers or their representatives, forwarding orders from farmers.
• Grain Merchants: Traders involved in the seed and grain business who also hold licenses for seed production.
• Crop Buyers: Collectors and crop traders who serve as intermediaries between farmers and seed markets.
• Retail Store Dealers: Town and village dealers who sell various agricultural inputs, with larger operations potentially having sub-dealers.
• Industrial Processors: Companies focused on specific crops, such as oilseed crushers and vegetable canners, may supply seeds as part of a contracted or integrated production system.
• Cold Store Operators: Operators of potato cold storage facilities often trade potato seeds because they work directly with growers and possess suitable storage facilities.
• Consumer Outlets: Garages, shops, and supermarkets are suitable for displaying small seed packets.
• Mail Order: This method is suitable for low-volume, high-value products like vegetables and flowers, where seeds can be ordered by mail.

Although government extension outlets are not strictly retail outlets, seed is sometimes supplied to the farmer through government sponsored agencies and departments which administer crop or regional development and credit programmes.