Introduction​

 

 

I. INTRODUCTION:

 

KARNATAKA STATE SEEDS CORPORATION LIMITED (K.S.S.C) is a Government Company registered under Companies Act, 1956 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, with respect to seeds activity, with a continuous pursuance of excellence in quality and effective distribution system, with an eye on right product, right time, right price and right place of necessity / requirement.  

 

 

III.  INVESTMENT:

 

The Government of Karnataka, Government of India through National Seeds Corporation Ltd. (NSC) and the Seed Growers are eligible for investment in the Share Capital in the proportion of 35:30:35 respectively. 

 

IV. BOARD OF THE COMPANY:

 

The Board of the Corporation consists of 12 Directors, 4 from each of the category, that is Government of Karnataka, Government of India through National Seeds Corporation Ltd. (NSC) and the Seed Growers. The position of the Chairman is now held by the Additional Chief Secretary & Development Commissioner, Government of Karnataka. 

 

V. SHARE HOLDER SEED GROWERS:

 

The Articles of Association of the Company provides an opportunity for seed growers to become shareholders.  Accordingly, for the year ending 2014-15 there are 11058 seed grower shareholders, holding 154960 number of   equity shares of Rs.100/- each.   The seed growers can acquire a minimum of 10 equity shares and a maximum of 100 equity share of Rs.100/- each.  Up to the year 2000-01 the Corporation has paid an incentive of about 15 to 25% of the paid up share amount in the form of discount coupons to the Share holder growers for promoting the sale of Foundation and Certified seeds. From the year 2006-07 to 2008-09 discount coupons worth 25% of the paid up share amount and 6% dividend has been issued to the shareholders.  From the year 2009-10 to 2014-15 10% dividend on the paid up share amount is paid to the Share holders along with 25% worth of the paid up share amount through discount coupons.

 

VI. ORGANISATION  OF  OPERATIONS:

 

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

 

Based on the Agro climatic conditions of the State, the cropping pattern, the manageable geographical territory and the potentiality of the locations, the Corporation has established the operational centres. The operational centres are   headed by an Assistant General Manager (OP) or Manager (OP) or Deputy Manager (OP) depending on potentiality of the location and work load. The Centre Head in each of the centre is assisted by required supporting staff. The Corporation has established 33 operational centres, with Sale Points. Depending on the potentiality of Seed production, the Corporation has established 23 Seed Processing Units at various places in the State.

 

VII. MAIN  ACTIVITIES OF THE CORPORATION:

 

  1. SEED PRODUCTION:

     

    The Corporation organizes the contract seed production through its shareholder growers and other resourceful progressive growers on their land holdings.  The required Breeder / Foundation seeds and Seed Production Technical Know-how are provided by the experienced field functionaries of the Corporation for effective quality seed production.

     
  1. SEED PROCESSING:

     

    The Corporation will take up the processing of raw seed produced by the Seed growers’ complied with seed quality parameters at field level.

     

    Under the National Seed Project Phase-II, the Corporation has established two modern seed processing units at Davanagere and Chickaballapur.  

     

    Under the National Seed Project Phase - III, the Corporation has established high capacity seed processing units at Ballari and Mysuru. This facility is further strengthened by establishing 13 seed processing units at different locations in the State under RKVY project.   Under Karnataka Seed Mission 2012-13 programme, the Corporation has established two modern Seed Processing Units with high capacity processing plant at Bidar & Vijayapura. Uptil now the Corporation has 23 Seed Processing Units with an installed seed processing capacity of around 8,17,500 quintals per annum on wheat seed basis.

     
  1. SEED MARKETING:

     

    The Corporation has 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 also through authorized Seed Dealers.

     

     

    VIII. ACHIEVEMENTS OF THE CORPORATION:

     

    1.   Karnataka State Seeds Corporation in the present status and style has been regularly making profits with exception during the year 2002-03. Due to severe drought prevailed in the State during 2002-03, the Corporation failed to make profit. The Corporation has achieved a profit of (before tax) Rs. 65.37 lakhs for the year 2014-15.

     

2.    INCREASE  IN  PROCUREMENT:

 

The Company during the year of incorporation 1978-79 as Karnataka State Seeds Corporation had procured 14,318 quintals of value Rs. 54.61 lakhs.  The seeds procurement was almost tripled to 44,276 quintals of value Rs. 164.43 lakhs during the year 1980-81.  This was doubled to 91,704 quintals of value  Rs.1099.76 lakhs during the year 1992-93.   This was further increased to 305921 quintals of value    Rs.12031.00 lakhs during the year 2014-15.  The Company is pro active to seed growers and continues 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 seed sold was almost tripled to 38,401 quintals of sales value Rs. 185.60 lakhs during the year1980-81.  This was doubled to 79,935 quintals of value   Rs. 1670.63 lakhs during the year 1992-93.   This was further increased to 372172.46 quintals of sales and value Rs. 14827.96 lakhs during the year 2014-15.  The Company is maintaining a major share in the certified seeds market covering around 40% market share.   The Company has maintained a profit track record since its incorporation in the present style as Karnataka State Seeds Corporation

 

4.    TRAINING:

 

The Company imparts Technical know-how to Share holders 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, Shivamogga and from Central Research Institutes. 

 

5.     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 25 Crops with 74 Number of varieties and the Corporation is a participant of the National Seed Bank programme.   

 

 

 

 

6.     FINANCIAL POSITION:

 

The Company as of 2014-15 has raised Rs. 361.25 lakhs share capital from its share holders.    The cumulative Reserves and Surplus as at the end of 2014-15 is Rs.2708.60 lakhs. The company has almost maintained a profit margin of 0.50% to 1.00% over sales turnover.   All the expenses of the Company are met on self sustaining basis. 

 

 

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 372172.46 quintals with value turnover of Rs. 14827.96 lakhs during the year 2014-2015.
  2. The product range of the Company is wide with 25 crops and 74 varieties.
  3. Commenced with 3 Seed Processing Units and now grown to 23 seeds processing units with 5,08,500 qtls  Processing capacity per annum.
  4. The Corporation has 33 Operation Centres, 23 Seed Processing Units. The Cumulative seed storage capacity of the Corporation is 5,00,000 Quintals,  Out of which 30 godowns are owned by K.S.S.C., with a storage capacity of 3,85,000 Quintals, and balance storage capacity is hired from different sources. 
  5. Built 200 MTs capacity Dehumidified Air Conditioned seeds storage.
  6. Grown from 13 operational locations at the inception to 33 locations now.
  7. Holds 40% market share of Certified Seeds in the State.
  8. Skilled Seeds producing growers grown from 1000 to 10994.
  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. Head Quarter Complex along with seed super market at Hebbal, Bengaluru is under construction.
  12. The Corporation is a participant in National Seed Bank programme.

     

     

     

      IX. PROGRAMME AND ACHIEVEMENT DURING 2014-2015:

     

     

    a)  Foundation Seed Production Programme: The Corporation has planned to produce 25,099 quintals of Foundation seeds in an area of 4087 acres and the progress at the end of March-2015 is 2356 acres, and qty procured is 7984 quintals

     

    b)  Certified Seed Production Programme: The Corporation has planned to produce 527300 quintals of Certified seeds in an area of 69422 acres and the progress at the end of March-2015 is 40329 acres, and qty procured is 2,49,618 quintals

     

    c) Seed Distribution: The Corporation has planned to distribute 4,24,998 qtls of seeds during the year 2013-2014 to achieve a turnover of  Rs. 18,626.40 lakhs, and the progress at the end of March 2015 is 3,12,583.00 quintals and the sales turnover achieved is Rs. 14,139.33 lakhs. The Corporation is actively participating in the State and centrally sponsored programmes for distribution of seeds under Subsidy like SFMF, ISOPOM and etc.

     

    X. ANNUAL PLAN FOR THE YEAR  2015-16:

     

    SEED PRODUCTION:

     
  1. Foundation Seed Production: The Corporation has targeted to produce 13,738 quintals of foundation seeds during 2015-16 in an area of 2381 acres.
  2. Certified Seed Production: The Corporation has targeted to produce 3,48,150 quintals of certified seeds during 2015-16 in an area of 48,992 acres.

     

    SEED DISTRIBUTION:

               

            The Corporation has targeted to distribute 3,53,846 quintals of seeds during the year 2015-16 to achieve a turnover of Rs. 15,529.00 lakhs.

 

 

 

X.   ESTABLISHMENT OF OWN RESEARCH AND DEVELOPMENT UNIT:

 

The Corporation has established it’s own Varietal Research and Development unit at Dharwad during August – 2006.   This is to promote Breeding of own Research Hybrids / Varieties in Maize, Sunflower and Cotton in addition to purification of Foundation seeds of existing varieties where ever necessary.

 

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