1. POSITION PAPER ON THE SEED INDUSTRY Role of Seed in Transforming of Agriculture in Myanmar Tin Htut Oo and Tin Maung Shwe September, 2013 Siam reap, Cambodia

2. Outline of the presentation Rationale Background and Evolution of Seed Industry Role of Improved Seed in Agriculture Law , Regulation and Institutional Bodies Seed Industry engaged by private seed enterprises Value chain of seed industry in Myanmar Challenges in Development of Seed Sector Future Pathways with Recommendations 3. Introduction 27.55 8.42 0.39 0.16 0.74 19.52 1.03 4.54 17.80 19.84 Agriculture Livstock&Fishery Forestry Energy Mines Industry Electricity Construction Services Trade Sector Share in GDP (Kyat in Million) Share in GDP (%) Agriculture 11,159.50 27.55 Livestock &Fishery 3,411.10 8.42 Forestry 158.40 0.39 Energy 65.80 0.16 Mines 301.20 0.74 Industry 7,905.20 19.52 Electricity 418.50 1.03 Construction 1,839.30 4.54 Services 7,211.00 17.80 Trade 8,037.80 19.84 Total 40,507.80 100.00 4. Rationale Diverse agro-ecological condition Strategic position of geographical condition Natural resource potential to become creditable global food supplier Attaining these potential, Myanmar needs to enhance food crops productivity and competitiveness Towards increased productivity and competitiveness, quality seed production and competitive seed industry are key elements 5. Background and Evolution of Seed Industry Before 1966, Indigenous paddy varieties were selected and multiplied at seed farms and distributed seeds to farmers through state extension agents (over 1 million metric ton of certified seed distributed in 1962-63) Selection method used in oilseeds cotton, pulses and sugarcane varieties and yield trials of some imported improved varieties Before 1977, most farmers grew mostly indigenous crop varieties, locally available through exchange among them. Stagnant rice production with increasing population resulted decrease in rice surplus. Whole Township Paddy Production Program launched in 1977-78 at selected 82 townships located in Ayeyarwaddy, Bago, Yangon Mandalay and Sagaing Regions, covering 2.5 million ha of paddy launching summer paddy program in1992-1993 (HYV paddy seeds were multiplied in state seed farms and distributed to farmers) Collaboration with international research institutions in varietal improvement research, exchange of germplasm, establishment of seed bank in 1987 Outcome of improved varieties: Hybrid corn, hybrid sunflower, Mutant paddy , GM cotton Formal seed flow and informal seed flow Public sector to Public-Private Partnership and Private-Private Partnership in seed production , distribution and marketing 6. Role of Improved Seed in Agriculture 0 10 20 30 40 50 60 Percent Area covered by HYV (%) 7. Introduction of Summer Paddy and Paddy Production 0 5 10 15 20 25 30 35 0 0.2 0.4 0.6 0.8 1 1.2 1.4 Production(milMT) RiceSownArea(milha) Year Summer paddy Prod (mil MT) 8. Sown Area and Yield of Cotton (GM seed in 2007-08) 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 0 50 100 150 200 250 300 350 400 MT/Ha Thousadhectare Sown area Yield 9. Law and Regulation for seed sector development No Title of Law or Regulation Scope of Law or Regulation Responsible Agency Status 1. Plant Pest Quarantine Law To prevent quarantine pest entering into Myanmar DoA, MOAI Enacted in1993 2. The Seed Law To produce crop with quality seed and to carry out seed business systematically DoA, MOAI Enacted in 2011 3. Farm Land Law Liberalization land use right to be mortgaged, sold, rent, transferred and inherited SLRD, MOAI Enacted in 2012 5. Law on Bio safety To manage safety of seeds and plant parts MOAI Drafted 6. Plant Varietal Protection Law To protect breeders right DAR, MOAI Drafted 10. Value Chain of Seed Industry in Myanmar FARMERSCONTACT FARMERS PRIVATE COMPANIES DAR DOA Breeder Seed Foundation Seed Register Seed Certified Seed Imported Hybrid Seeds Value Chain Seed Production Seed Distribution 11. Seed Industry engaged by private seed enterprises Ten Rice Specialized Companies produced 2000 MT of certified paddy seeds in 2012 through contract farming arrangement between Co. and farmers Some local & foreign seed companies. are producing hybrid seed of paddy, corn and vegetables by support of MOAI C P Company Hybrid Corn Known You Seed Company Melons, Cucumber Malar Myaing Vegetables Seeds Small Private Individuals Vegetables Seeds Myat Min Rice East-West Seed Company Vegetable seeds (bitter gourd, cucumber, chili, tomato) Geniune Seeds company Vegetable seeds (Thailand) 12. Perspective from Demand and Supply Sides for low use of Certified Seed Low Use of Certified Seed Awareness and Knowledge Price and Affordability Access to Market Quality Assurance Clear Benefits from Use DEMAND Under funded Research Under funded Extension Infrastructure production, pr ocessing, stor age Capacity growers, te chnicians, r esearchers Incentives for growers and companies SUPPLY 13. Challenges in Development of Seed Industry Production and distribution of certified seed in official (formal) system is not functioning well lack of systematic distribution system Inadequate and unskilled staff in technical support, management and monitoring Awareness of farmers on quality seed is low and lack of established seed market to sell their products Limited quantity of quality seed supplied by state seed farms to farmers need and inadequate extension staff Insufficient seed processing and seed testing facilities There are difficulties in seed import and export due to lack of SPS and quarantine agreement functioning yet even it allows 2 years grace period PVP for breeder right is still under drafting 14. Strength, Weakness, Opportunities and Threats in Development of Seed Industry 15. Future Parth way with Recommendations 15 Consistency of FDI with Seed law and Land law Incentives to seed growers and seed company tax incentives but time bound with exit strategy Incentive to seed growers Arrange local seed reserves (through proper storage facilities) Protection of breeders right (PVP to be expedited for approval) Affordable but market driven prices for quality seeds Lessons learned from ASEAN neighbors Awareness program to be expanded to reach farmers and private business Revitalize development of cooperatives or seed business associations Rural financing mechanisms (link with storage and pricing during peak and slack seasons) 16. POLICY INVESTMENT INSTITUTIONS Short Term (1-2 years) a. Seed Policy b. Rice Policy c. Trade Policy a. Seed farm infrastructure b. Processing a. Membership of UPOV Medium Term (1-5 years) a. Laboratories a. Seed associations b. Quality assurance Long Term (1-10 years) a. Extension b. Research a. Coordination mechanisms b. Market information 17. Thank You