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How to Start a Profitable Seed Processing Business

Seeds are important ingredients in agriculture and farming activity. And farmers who are into commercial farming always prefer processed seeds. Therefore, processed seeds have a good market throughout the globe. An individual can initiate a small-scale seed processing plant with moderate capital investment. Here in this post, let us discuss how to start a small-scale seed processing business.

First of all, let us understand what seed processing is all about. Basically, certified seed processing consists of agricultural activity as well as processing activity under a license from the State Authority.

Basically, both grain seeds and vegetable seeds are widely popular. And paddy, wheat, and maize are major staple good grains globally. Hence, the production of these crops ranks highest in quantity. Apart from these, vegetable and fruit seeds hold the second position in quantity.

Generally, in the organized sector, you will find two different types of seeds. One is certified seeds and the other is processed and packaged seeds. When you process the seeds under the certification of government agencies, the seeds are certified seeds. However, without having any certification, you can also process and pack the seeds. In that case, you have to ensure the seed quality like moisture content or germination rate.

Advantages of Using Processed Seeds

  • The use of certified agricultural seeds is essential to ensure higher agricultural production.
  • It is useful for the uniform establishment and growth of the crop.
  • Additionally, it enhances the seed germination process. Even, the plants withstand adverse conditions like more or fewer moisture levels.
  • Finally, a certified seed enhances the immune system in the plants. Therefore, it prevents the plants from diseases and also the spread of plant diseases.

5 Steps to Start Seed Processing Business

1. Cost & Investment for Seed Processing Plant Project

Obviously, investment is a major concern for any entrepreneur. And here comes the role of a customized business plan. First of all, you must identify the demand for the specific type of seed in the market. And accordingly, you have to finalize the product first.

After deciding on a particular seed, you have to craft a project report or business plan. The project report is a must in both cases if you apply for finance or not. Basically, a project report is the blueprint of a business. And it also helps to commence the business in a proper way without facing any unwanted difficulties.

Suggested Read: Profitable Agriculture Business Ideas to Start on Small Scale

Generally, a seed processing plant business demands investment for securing the land and purchasing the machinery along with working capital investment. The business demands comparatively higher working capital investment than other agro-processing industries.

2. Seed Processing Plant Setup

Basically, certified seed processing consists of two different activities. These are agricultural and processing activities. Therefore, you must set up a plant near the cultivation land.

The area required for the plant depends on the type of seeds you want to produce and in which quantity. As an example, if you want to produce only paddy seeds 3000 sq. ft of the covered area is sufficient for the operation. Additionally, you must have some open-to-sky area at your factory.

Generally, you can operate the seed processing plant with electricity only. However, for continuous production, you must have an arrangement for a diesel generator.

3. Seed Processing Plant Machinery

Basically, the machinery requirement depends on the particular seeds that you want to process. However, here we have compiled a basic list of machinery.

Furthermore, you can set up the seed processing plant in two ways. Either as semi-automatic or as fully automatic. It is without saying, a semi-automatic plant costs less than a fully automatic plant.

  • Pre-cleaner
  • Seed Cleaner
  • Indent Cylinder
  • Specific gravity separator
  • Elevator up to 5 m in height
  • Vacuum cleaner
  • Electronic moisture meter (Wet type)
  • Bag closer heavy duty
  • Weighing scale
  • Diesel generator set

4. Agricultural Activity

As a seed processing company, you have to first collect the breeder seed from the authorized research center. After that, you have to multiply the seeds for producing foundation seeds. And finally, you will get seed crops. And a government-authorized certification agency will certify the seeds.

Seed multiplication demands a huge land area for cultivation. If you don’t have that land, you can opt for contract farming with the local farmers.

5. Processing Activity

Broadly, you can divide the seed processing into various steps. As you receive the seed at the processing plant, it goes either directly into the cleaning process or into storage to await processing.

Drying may be necessary. As processing begins, the first phase (conditioning and pre-cleaning) consists of scalping, debearding, shelling, or any other operation necessary to make the seed flow easily.

The second phase (cleaning and grading) includes the removal of inert materials, weed seed, other crop seed, and broken seed that are larger or smaller than the crop seed. Here, you will obtain the seed mass in the uniform size range of perforations of the top and bottom screen.

After getting the desired purity, the seed enters the final processing phase of separation based on specific characteristics like length, weight, etc, and treatment and packaging. Finally, store the processed seed for distribution and sale.

Seed processing ensures a lucrative revenue in the agro-input industry. Additionally, the business opens several other avenues for growing the business widely.