1. Introduction:

         KARNATAKA STATE SEEDS CORPORATION LIMITED (KSSCL) is a Government Company registered under the Companies Act, 1956 on 30-06-1978 for the purpose of dealing with the most vital input ‘SEEDS’ for the benefit of the farmers of the State. 

    II  Objective of the Company:

          To emerge as an industry leader in the State, in seed line of activity, with a continuous pursuance of excellence in quality and effective distribution service, with an eye on right product, right time,           right price, right place of supply.  

  III. Investment:

 The Government of Karnataka, National Seeds Corporation Limited (NSC) and the Seed Growers are eligible for investment in the Share Capital in the proportion of 35:30:35 respectively.  Present status of the Share Capital as on 31-03-2023 are as below:

1. Board of the Company:

As per the Memorandum & Articles of Association of the Company, the Chairman of the Company is Hon'ble Minister for Agriculture, Government of Karnataka. The Company has 14 Directors, represented by Government of Karnataka, National Seeds Corporation Limited (NSC), Grower's shareholders.

1. Shareholder Seed Growers:

The Articles of Association of the Company provides an opportunity for seed growers to become shareholders. For the Financial Year ending 2022-23, there are 9048 shareholders. The seed growers can acquire a minimum of 10 equity shares and a maximum of 100 equity shares of Rs.100/- each. Until 2000-01 every year the Company paid an incentive of about 15 to 25% of the paid-up share amount in the form of discount coupons promoting the Seed growers to purchase Foundation and Certified seeds.

From the year 2012-13 to 2023-24, 10% dividend is paid to the Shareholders on their paid up share value and discount coupons at 25% of paid up share value.  The District wise shareholders list as on 31-03-2024 are as below:

1. Organisation of Operations:

Presently, the Company is placed in an environment of globalization, a liberalized economy, and a competitive market situation.  The Management of the Company is governed by the Board of Directors. The Managing Director is the Chief Executive of the Company and is also represented on the Board, functioning within the policy framework set out by the Board.  Presently he is assisted by the functional set up at the Head Office level by General Manager (FA&MIS), General Manager(P), General Manager (MPD&C), and Company Secretary-cum-Deputy General Manager (P&A).

The details of the Chairman and Managing Directors of the Company, since its inception are as below:

   List of the Chairmen served for the Organisation:

List of the Managing Directors served for the Organisation:

Based on the similarity in terms of Agro climatic conditions, cropping pattern, manageable geographical territory, and potential workloads, the operational centers have been established. Each operational Centre is headed by an Assistant Manager (OP) / Manager (OP) / Assistant General Manager (OP) depending on the potentiality of the area and workload and assisted by supporting staff. The Company has established 35 operational units consisting of Sale Points, Seeds Processing Units, and Production and Marketing Centres. The details are as below:

STATEMENT OF LOCATION OF OPERATIONAL CENTRES OF THE COMPANY

VII. MAIN ACTIVITIES OF THE COMPANY:

1. SEED PRODUCTION:

The Company organizes the contract seed production programme through its shareholder growers and other resourceful progressive growers on their land holdings.  The Breeder / Foundation seeds and Seed Production Technical Know-how required for seed production are impacted by the Company to the seed producing farmers through its technically trained personnel.

1. SEED PROCESSING:

The Company at present has established 25 Seed Processing units in the State. The seeds produced by the Seed growers will be checked for its minimum seed certification standards at field level is processed in these seed processing units at free of cost. The cost of processing is being borne by the Company. 

Under the National Seed Project Phase-II, the Company has established two modern seed processing units at Davanagere and Chickaballapur. Under NSP-III, the Company has established high capacity Seed Processing units at Bellary and Mysuru. Under Karnataka Seed Mission 2008-09 program, the company has established two modern Seed Processing Units with high capacity processing units at Bidar & Vijayapura. Corporation is participating in RKVY Project since 2007-08 and strengthening Seed processing and seed storage facilities at various places and this facility is further being continued. As on day the Company has 25 Seed Processing Units with the installed seed processing capacity of around 8,17,500 quintals per annum(on wheat basis) and operating capacity with different seeds is around 413720 quintals per annum. List of Seeds Processing Units with their operating processing capacity Vs. Utilization as in 2022-23 are shown below:

• SEED MARKETING:

The Company is mainly making the seeds available through the Raitha Samparka Kendras of Karnataka State Department of Agriculture. The seeds are also made available through KSSC outlets / Co-operative societies and through authorized Seed Dealers.

ACHIEVEMENTS OF THE COMPANY:

1. Karnataka State Seeds Corporation in the present status and style has been regularly making profits with exception to the year 2002-03. During 2002-03 the company has suffered loss due to continuous drought condition prevailed in the State. Subsequently the Corporation is continuously making profit in its operations. The Corporation has achieved profit of Rs. 1095.85 lakhs (before tax) for the year 2022-23.

2. INCREASE IN  PROCUREMENT:

The Company during the year of incorporation 1978-79 as Karnataka State Seeds Corporation had procured 14,318 quintals with value of Rs. 54.61 lakhs.  The seeds procurement is increased to 1,96,840.68 quintals with value of Rs.9901.09 lakhs during the year 2022-23. The Company is proactive to its seed growers and continued to maintain a track record of paying highest procurement rate in the industry. The Company’s procurement policy is considered to be a benchmark for other participating seeds companies in the State.

3. INCREASE IN SALES:

The Company during the year of incorporation in 1978-79 as Karnataka State Seeds Corporation had sold 12,090 quintals of sales value Rs. 58.40 lakhs. The sale of seeds during the year 2022-23 is 2,73,063 quintals of sales with a value of Rs. 18961.00 lakhs. The Company maintains a major share in the certified seeds market covering around 60% of the market share. The Company has maintained a profit track record since its incorporation. A statement indicating the performance of previous years is as below:

         SALES PERFORMANCE OF THE COMPANY FOR THE LAST 10 YEARS:

4. TRAINING:

The Company imparts Technical know-how to Shareholders and seed producing farmers on regular basis through its technically trained personnel by regular field inspections. Company on crop to crop basis also conducts training to seed producing farmers with the help of scientists from University of Agriculture Sciences, Bengaluru, Dharwad, Raichur, UAHS, and Shivamogga. 

Corporation has organized study tour programme to share holder growers to Andhra Pradesh State during the year 2016-17.

PRODUCT RANGE:

The Company is mainly concentrating on Production and Marketing of Seeds of Agricultural Crops and recently importance is also given to production of Seeds of Vegetable Crops.  The Company is dealing with seeds of 22 Crops with about 105 Number of varieties and the Corporation is a participant of the National Seed reserve of Sub Mission on seeds and Planting material (SMSP) programme. The existing active product list of the Company is as below:

The above class and variety of seeds includes all kinds / Category namely Foundation, Certified and Truthfully labeled seeds.

5. FINANCIAL POSITION:

The Company as of 2021-22 has Rs. 374.89 lakhs share capital from its shareholders. The cumulative general Reserves and Surplus as at the end of 2021-22 is Rs.4630.88 lakhs.   All the expenses of the Company are met on self-sustaining basis. 

6. INFRASTRUCTURE DEVELOPMENT:

The Company had participated in the National Seed Project Phase - II & III and received financial assistance for the development of infrastructure facilities.  Under Phase II Company had constructed Two Modern Seeds Processing Units at Chikkaballapur and Davanagere.  High capacity processing facilities was provided at Bellary under O.P.P. grants. The Company has constructed a Modern Dehumidified Godown at Bellary.  Under O.P.P. grants the Company had constructed godowns at Mysuru and Tumkuru. Under Karnataka Seed Mission 2008-09 programme, the company has established two modern Seed Processing Units (20000 qtls. each) with high capacity processing plant at Bidar & Vijayapura.  Corporation is participating in RKVY Project since 2007-08 and strengthening Seed processing and seed storage facilities at various places and this facility is further being continued. The present seed storage facility is around 6.00 lakh quintals.

7. IMPRESSIVE TRACK RECORD OF GROWTH:

1. Sales turnover of the Corporation was 12,090 quintals with value turnover of Rs.58.40 lakhs during the year 1978-79 and now grown to 2,73,062 quintals with value turnover of Rs. 18,961.00 lakhs during the year 2022-23.
2. The product range of the Company is wide with 22 crops with about 105 varieties.
3. Commenced with 3 Seed Processing Units and now grown to 25 seeds processing units with 4,13,720.00 quintals Processing capacity per annum.
4. The Corporation has 35 Operating Centre sand 25 Seed Processing Units. The Cumulative seed storage capacity of the Corporation is around 6.00 lakh quintals with 40 Nos. of seed storage godowns.
5. New Administrative Office Complex has been constructed at Hebbal, Bengaluru during 2015-16 since the old Registered Office has been demolished for widening of National Highway.
6. Grown from 13 operational locations at the inception to 35 locations now.
7. Holds 60% market share of Certified Seeds in the State.
8. Skilled Seeds producing growers grown from 1000 to 11055.
9. The Corporation is playing Pivotal role of establishing Benchmark for procurement and Sale prices in Seed Industry in Karnataka.
10. The Corporation has established a specialized Vegetable Seeds Processing Unit at Chickballapur.
11. The Corporation is a participant in National Seed reserve of Sub Mission on seeds and Planting material (SMSP) programme.

9. CHALLENGES FACED BY THE CORPORATION:

1. Stagnation/decline in the sales turnover and profits due to lack of competing high value hybrids in the areas of Cotton, Maize, Sunflower and Vegetable Seeds.
2. Intense competition from the Multi-national and other Private Companies having popular hybrids in the areas on Maize, Jowar, Sunflower, Cotton and Vegetable seeds.

• The Corporation is confident to identify performing high value hybrid seeds in due course of time for multiplication and trade to accelerate in sales turnover and the overall growth of the organization.

10. ESTABLISHMENT OF OWN VARIETAL  RESEARCH AND DEVELOPMENT   

      CENTRE:

• Karnataka State Seeds Corporation has established its own Varietal Research and Development Centre (VRDC) in 2006 at Dharwad.
• Breeding of own Research Hybrid / Varieties in Cotton, Maize, Sunflower and Bajra.
• BRMH-1 in Maize & BRSSC -3 in Sunflower are released for commercialization.
• Cotton DCH-32 development work has been completed under KSSC, UASD collaborative project and planned for commercialization during kharif-2020.

Apart from development of research hybrids / varieties in cotton, Maize, Sunflower and Bajra, the purification of foundation seeds of existing varieties is carried out.