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It was further submitted that the standardized seeds so obtained are called `Foundation Seeds'. These foundation seeds are thereafter again supplied to the listed farmers variety wise with intimation to the Agency. The farmers sow these foundation seeds which are again supervised by the Agency. This crop is again germinated under strict supervision of the agency and once again the lots rejected are not taken back by farmers. After harvesting the approved standardised certified seeds, these lots are fumigated for preservation under the samples of each lot is tested in the laboratories of Seeds Certification Agency at Alam Bagh(Lucknow), Kanpur, Rudrapur (Udham Singh Nagar). The rejected lots and losses at processing are returned to farmers only after the foundation seeds are certified as conforming to specifications, the lots are subjected to treatment with insecticides (Cell phose, Quick phose) and pesticides (thiram and barastin) at the time of packing.

2. Laws governing seeds business:
2.1 The seed industry for production and sale is regulated under the Seeds Act, 1966 and Rules and Seed Control Order, 1983. Under the seeds Act, the Government has made State Seed Certification Agencies who are responsible to certify seeds and monitor their production and sales.
2.2 "The Indian Minimum Seed Standards" lays down the minimum seed standards required for each crop which can be certified.
3. Method of Seed Production:
3.1 The company purchases breeder seed from the Agricultural Universities and then produces the next stage i.e. foundation seeds. These foundation seeds are given to contract farmers for further production to certified seed.

This certified seed is sold to trade and subsequently to farmers. Foundation Seed is the progeny of Breeder Seed and certified seed the progeny of Foundation Seed.

4. Procedure of production:

4.1 Purchase of breeder seeds from universities.(Rule 14(a)) 4.2 Classification of foundation seed from breeder seed.( Rule 14(a)) 4.3 Giving foundation seed to contract farmers. ( Rule 14(c)) 4.4. Registration of the contract farmers with the State Seed Certification Agency and payment of registration and inspection charges to the agency.(Rule 6(d) & Form I) 4.5 Sowing the foundation seed by the contract farmer in his field.

It is also very useful to refer hereunder the process by which the seed is manufactured under the Seeds Act and the Seeds Rules:

" (i) Seeds developed in laboratories are classified as Breeder Seeds and are sold through the Ministry of Agriculture or notified Agriculture Universities to producing agencies, Companies and farmers. Foundation Seeds (Stage I and II) are developed as progenies of Breeder Seeds and are required to obtain a Certificate from the Seed Certification Agency.
(ii) The production of Foundation Seeds is supervised and approved by the Certification Agency to maintain specific genetic identity and genetic purity and are required to conform to certification standards specified for the crop/variety being certified.