1. Seed Provision Policy in
Thailand
Nipon Poapongsakorn
Kamphol Pantakua
TDRI
ReSAKSS-International Conference on Agricultural
Tranformation in Asia: Policy options for Food and
Nutrition security. Organized by IFPRI,
Siem Reap, 25-27 September 2013

2. 1. Objectives
 This paper will answer 3 questions:
• What are the salient characteristics of the seed
market? …..not discussed today
• What were the major changes in the public
policies of seed provision in the last two decades?
And how did the policies affect the private seed
market?
• What are the key take –home messages?

3. Main findings
 Though the rice seed provision is still
dominated by the public sector, the private
seed market has thrived recently, thanks to (1)
the strong government support, (2) long-term
investment in research and training of plant
breeders, (3) limited public resources and the
Seed Division policy not to compete with the
private sector in seed trading business.
 The government has also proactively support
the role of private sector in hybrid seeds for the
same reasons.

4. Outline
 A brief overview of the markets for rice and
maize seeds….not discussed today
• Rice seed is inbred varieties, maize is hybrid
 A brief development of agricultural research
and seed policy in Thailand
 Law, regulations and policy in the seed
markets
 Some challenges in the future

5. 2. The seed markets in Thailand
2.1 Rice seed market: rising demand, smaller govt share
Demand for rice seed is estimated at 1.14 million tons/year (2012)
• KDML 105 (26%) and RD.6 (22%) is the most popular varieties (Figure 3.1(b))
• Chainart1,2 (8%) and Supanburi60,90 (2%) are the most popular non-
photosensitive varieties.
Millions
Demand for seed 1976 -
2012
Non-
Photos
ensitiv
e
KDML
RD.6
glutino
us
22%
Photos
ensitiv
e
Other
Landra
ce
Seed used 2012 (1.1
M.ton)
Source: Office of Agricultural Economics.

6. 2.2 Maize seed market: dominated by a
large-scale Thai firm and a few MNCs
• Demand for maize seed is 23,500 tons/year, most of which are field
maize (Table 2 and Figure 5)
• 96% of farmers used hybrid seed
Type of
maize
Planted
area
(Ha)
Seed use per
area (kg/Ha)
Seed
demand
(ton)
Field
maize
22,100.99
Sweet
corn
341.17
Baby
corn
1,033.73
Source: Napasintuwong, O. 2013.
Thousandston
MillionsHa
Figure 5 Planted area and demand for
maize seeds in 1981-2011
Planted area (Ha) Maize seed demand (ton)
Hybrid seed (ton)
Table 2: Planted area and seed requirement
for corn
Source: Suwantaradon et al., 2011

7. 3. The development of rice research and
seed policy in Thailand
3.1 Brief history of genetic improvement
 Between 1960 and 2010, the Department of Rice
successfully developed 100 of varieties
- - - - - -
NumberofGenetic
Improvement
Number of Registered Varieties
Modern Plant breeding
Source: Rice Department
Figure 7-a: Number of Registered Rice Varieties,1956-2012

8.  Thailand have 2 major problems in
agricultural research.
• Declining of agricultural and rice research
intensity
 Rice research budget received by DOR is 200 mil
bath, comparing to the output of 350 billion baht
• Shortage of researchers, especially plant breeders
Figure 8: Declining agricultural and rice research intensity
Rice Agriculture
Source: Waleerat 2009, NRC and NESDB

9.  The Thai governments have always put emphasis on the production
and export of “quality rice”. In the first agricultural trade
exhibition in 1910, King Rama V stated that
“ the Oriental Nation,…, felt the need again of opening the country to
commerce as it was necessary for the prosperity add strength of the
nation. Such a nation can now be seen, which by fostering agriculture
and commerce, and by changing its methods, has, in a short space of
time, brought itself to the foremost rank, in power and
prosperity…….Many of the samples of rice (at the First Annual
exhibition of Agriculture & Commerce in 1910) were of high class….
And they (rice millers) told us that it was very seldom that they get such
fine samples of rice as shown at this Exhibition; and that if they could
get such good rice to send to Europe, they would be able to get prices
equal to Patna rice…”
(J. C. Barnett, 2004).
3.3 Brief history of rice seed production and provision

10. 3.3 Brief history of rice seed production and provision
The main policy objective has always been
“quality rice”.
 The production of “registered seed” began even before
the Green Revolution.
 A law in 1942 stipulates that the rice seed varieties must
be measured at least 7.00 mm long, 2.00 mm wide and a
thickness not less than 1.60 mm.
 The 1975 Plants Act regulates the quality of seed
production and seed trade (see Figure 9).
 The government began to establish 23 seed centers
between 1976 and 1985 (DOAE 1995).
 In 1982, the government began to encourage the
farmers to exchange their seeds with the improved
varieties.

11. MillionsHa
Planted area of dry-season rice
Community
Seed centers
Figure 4.8: Chronology of rice seed policy:
quality of rice has been the main objective
Seed
replacement II
Co-op seed
centers
A private seed company
entered the market
Source: OAE and DOR.
Rice seed
wholesaler
association
Registered
Seed Centers
Seed
replacement
Plant quarantine Act
1964, 1999, 2008
Plants Act
1975, 1992, 2007
Plant varieties protection Act 1999

12. Millionston
Millionston
Production Export chicken
Promotion of
maize cultivation
: land
distribution and
price support
1950s
Maize
breeding
investment by
RF and
establishment
of NCSRC
1966
Release of
first OPV
maize, Su
wan1 1975
Seed
Developme
nt Loan &
by USAID
1975
Investment
promotion of
maize seed
1970s and
commercializa
tion of suwan1
seed by a
private
company, BSI-
1979
National
program of
hybrid maize
development
1979
Supporting private
production of hybrid
seeds 1990s
and hybrid seed
subsidize for farmers
1994
CP released the
single cross
hybrid, CP.DK
888 1991
Source : O.Ekasingh,2013 and FAO.
Figure Chronology of
maize seed policy &
production of maize
3.4 Brief history of maize seed production and provision:
promoting the private sector

13. 4. Law, regulations and policy in the
seed markets
 Question: why the private seed markets –
both the rice inbred varieties and the maize
hybrid varieties – thrive?

14. 4.1 Overview of laws and regulations
Breeders
Registered
certification
New varieties, Landrace, Endemic varieties.
Varieties with unique characteristics.
Controlled seed
No.
renewal fees every 5 year but send
sample of every production lot to test
Collector register
Wholesale register
renewal fees every year
renewal fees every year
Wholesalers
resellers register renewal fees every yearRetailers
Import seed
For restricted or forbidden seed need
permission from the director of Department of
agriculture and phytosanitary certificate.
Import seed
For restricted or forbidden seed need
permission from the director of Department of
agriculture and phyto-sanitary certificate.
Plant
quarantine
act
Plant
varieties
protection
act
Plants act
Import policy
Figure 4.1: Laws governing the seed market
Trade policy
Seed
standard

15. -Seed suppliers & collectors must have collection
permits & seed certificates.
-All seed traders must apply for the sale permits
• Seed centers
• Community
seed centers
• Wholesalers
(Collectors)
Who are seed
collectors
• Seed centers
• Community
seed centers
• Wholesalers
(Collectors)
• retailers
Who are seed
sellers
1. Collections
permit
2. Sales permit
3. Seeds
certificate
Department of
Agriculture
Ministry's
Announcement
Plants Act
(1) Apply
Seed standard (see figure 3)
1.Pure Seed
2.Other Crop Seed and Other
Varieties
3.Weedy seed
4.Germination
5.Moisture
(3) Apply
(2) Apply
Note: 3 procedures.

16. • Seed standards
 Apply only for controlled seed
 Rice: highly regulated but new standard are lower
(Table 4.1)
Rice seed standard
Thai 2006 Thai 2009 USA 2012
1. % of Pure Seed
- Pure Seed (Minimum)
- Inert Matter (Maximum)
2. Other Crop Seed and Other Varieties
- Foundation None (Maximum)
- Registered (Maximum)
- Commercial (Maximum)
3. Weedy/Red Rice
- Foundation None None None (Maximum)
- Registered None None (Maximum)
- Commercial None (Maximum)
4. Germination (Minimum)
5. Moisture N.A. (Maximum)
Source: DOR and The California Crop Improvement Association

17.  Table 4.2: Maize seed standards, Thailand and
USA
Maize seed standard Thai 1993 USA 2011
1. % of Pure Seed
- Pure Seed (Minimum)
- Inert Matter (Maximum)
2. Other Crop Seed and Other Varieties None (Maximum)
3. Weed seed None None (Maximum)
4. Germination (Minimum)
5. Moisture (Maximum)
Source: DOR and The California Crop Improvement Association

18. Enforcement of seed certification
 Thailand has the reasonably efficient enforcement
mechanism to detect lower-standard
seed, deteriorated seed, contaminated seed.
 Yet there are two weakness
• The sampling method is loose
• Though the enforcement is quite active, the penalty is
quite light.
 Note that a few leading “rice” seed wholesalers
(collectors) put in place a rigorous process of seed
farm inspection

19. 4.2 Seed provision system
• Rice
 The seed provision system had been dominated by the
public sector (Figure 4.2). But recently the private sector
has played increasing role in supplying the seeds used by
farmers.
 The National Research Center is responsible for the
genetic improvement and production of foundation
seed, while the main unit that produces the extension seeds
is the public seed centers , who contract the farmers to
grow the extension seed and registered seed (Figure 4.2).
 The DOR helps the farmers to set up the “community
seed centers) to produce commercial seeds

20. 27 Research centers
Breeder seed
Foundation seed
Genetic
improvement
23 Seed centers
Extension seed
Commercial seed
Contract farmers
2,199 Community Seed
center
Commercial seed
Contract farmers
Collected* Collected*
97 Wholesalers
(Collectors)
Contract farmers
Collected*
Retailers
Cooperation
Registered
Retailers
Farmers
Farmers in near by
villages
Farmers
with good crop
Collected*
Sale
Supply
Sale
Note: *Collection regulation
is explained in figure 2 Sale
Sale
Sale
Rice seed provision system is still dominated
by the public sector
Figure 4.2: Rice
seed system

21. 4.3 Role of private rice seed
suppliers
• The private seed suppliers have just entered the market
since 1998 but their market share has increased sharply
(to 35%) because of 4 reasons
 cultivated area of dry season rice surged after 1998
 limited capacity of the government’s seed centers, i.e.,
budget & small staff
• the Seed Division has a clear policy to encourage the
private sector
• Enabling factor: seed certification and sale permit
regulation
 The private seed suppliers focus on the non-
photosensitive seeds which are demanded by the
commercial farmers who grow 4-6 crops in two years
in the irrigated areas of Central Plains and Lower
Northern provinces.

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MillionsHa
Planted area of dry-season rice
Community
Seed centers
The first major private seed suppliers
entered the market in 1998
Co-op seed
centers
A private seed company
entered the market
Source: OAE and DOR.
Rice seed
wholesaler
associatio
n
Seed Centers
Plants Act
1975, 1992, 2007

23. Limitation of the public seed
production capacity leaves room
for the private sector
Figure 4.4: Seed used and capacity
of government rice seed production
Thousandston/year
Capasity Seed used

24. The private seed suppliers focus on the
non-photosensitive seeds for farmers
growing 4-6 cycles in 2 years
Non-
Photosen
sitive
KDMLRD.6
glutinous
22%
Photosen
sitive
Other
Landrace
Seed used 2012 (1.1 M.ton)
Private
Seed
centers
Other
Seed used 2012 (0.5 M.ton)
Non-Photosensitive
Source: Estimate form OAE 2008 and interview private seed producer.
(of which 11% from SCs)
(0.4 M.tons)*
Figure 4.6: Market shares of photo-non-sensitive variety seed market

25. Market share of private rice seed
suppliers is much larger than that
of the public sector
Rice
department
Agricultural
co-
operation
Community
rice centers
Private
sectorSelf seed
and gray
market
Seed production capacity in 2012
(1.13 M.tons)
Rice
department Agricultural
co-operation
0%** Community
rice centers
1%**
Private
sector
35%
Self seed
and gray
market
“Most likely” actual market
share in 2012 (1.13 M.tons)
Note: *and interview private seed producer.
** Chaowagul 2013 argues that only 10% of cooperative and CRCs are active in seed production.
Source: Rice Department .
(0.4 M.tons)*
Figure 4.5: Capacity and market shares of rice seed

26.  The private rice seed market has not only
expanded, but become competitive because
• The products are almost homogeneous
• There are large number of small sellers and farmers can
save their own seeds
• No entry barriers
 Performance : the profit margin is only 1,000 baht
per ton or less than 6% of the pledging price.
• Many wholesalers are now entering the market to provide
the services of planting rice using the machine

27. 4.4 Factors explaining the development of the
maize hybrid seed market
 The emergence of the private maize hybrid seed market
was in response to the increase in the export of chicken
in the early 1990s (see Figure 4.7) which followed the
introduction of the modern poultry industry
 Unlike the private rice seed market dominated by the
public provision, the private maize seed market has
been
• (1) proactively developed by the closed cooperation of the
government and the private companies
• (2) the introduction of hybrid seeds by private firms
 MNCs use Thailand as seed production base, thanks to
availability of plant breeders & skilled maize farmers

28. Export of frozen
chicken surged
-
Thailand export of
poultry, froze and
precooked (tons)
Cut and frozen
Precooked and semi-cooked
Total
Source: Ministry on Commerce
-
tons
Poultry Meat
Pig meat
Milk
Production of poultry meat
1961 – 2010

29. 4.4 Factors explaining the development… (cont.)
 Two groups of policies and factors that helped support the
development of the private maize seed (see Ekasingh 2013) :
• Direct policies
• Enabling factors
 The direct polices (see Figure 4.10)
• Maize breeding investment and the establishment of the maize
research center in 1966
• Seed development loan by USAID in 1975
• Investment promotion of maize seed production in the 1970s
• Commercialization of Suwan1 variety (OPV) by Bangkok Seed
Industry Co. in 1979
• National program of hybrid maize development in 1979
• Supporting the private production of hybrid seed in
1990s, e.g., the research of Thai firms depend on germplasm
and free ride on research from NCSRC and CIMMYT (O.
Ekasingh, 2013).
• Legislation of the plant protection law in 1999 and the use of
trade secret clauses

30. Millionston
Millionston
Production Export chicken
Promotion of
maize cultivation
: land
distribution and
price support
1950s
Maize
breeding
investment by
RF and
establishment
of NCSRC
1966
Release of
first OPV
maize, Su
wan1 1975
Seed
Developme
nt Loan &
by USAID
1975
Investment
promotion of
maize seed
1970s and
commercializa
tion of suwan1
seed by a
private
company, BSI-
1979
National
program of
hybrid maize
development
1979
Supporting private
production of hybrid
seeds 1990s
and hybrid seed
subsidize for farmers
1994
CP released the
single cross
hybrid, CP.DK
888 1991
Source : O.Ekasingh,2013 and FAO.
Fig 4.10: Chronology of major maize policies

31. 4.4 Factors explaining the development… (cont.)
 The enabling factors
• Land distribution to veterans and poor farmers to
produce maize in 1950s
• Turning blind eyes to the illegal expansion of maize
production in the national forests since the 1970s
• Scholarship and training of plant breeders in 1960s and
1970s generated skills and knowledge of breeders both in
the public and private sectors
• Plants Act in 1999
• Promotion of contract farming for the production of
broiler (by Thai companies) and maize seeds (by MNCs)
• Investment privilege for the establishment of chicken
slaughtering house in the late 1970s

32. Structure and competition in the
hybrid maize seed market Structure: oligopoly but competitive
• More than a dozen companies – both MNCs and Thai
 Dominated by one largest Thai agri-firm (CP) and a few MNCs
(Syngenta, Monsanto, Pacific, Pioneer)
• 7 companies have the export shares of 73.8%
 3are Thai companies belonging to the CP group with combined market
share of 21.85%
 Competition
• MNCs have huge competitive edge, i.e., using their own
germplasm from their parent companies and share research and
seed production among regional branches
• Thai firms can make use of research and germplsm materials
from the public research system and CIMMYT. A few Thai firms
are also seed exporters.
• Thus there are competition both among big and small firms and
between Thai firms and MNCs
 As a result, farmers have alternatives in buying quality
seeds.

33. 5. Conclusion: take-home messages
 Seed provision policy: the government can create the
“competitive” markets for seed: smart
regulation, facilitating factors, enabling
environment, and reduce entry barriers
 Fertilizer policy: neutral trade policy (i.e., duty-free) on
fertilizer and minimal intervention will allow farmers
to make rationale and efficient use of fertilizer
 Public sector does not have to compete with private
sector because of no serious market failure
 Government still needs to provide information for
farmers to make informed choices, e.g., regulating
advertising, monitoring & enforcement of the “quality”
and “standards” of commercial seed and fertilizer

34. Thank you