FFTC Agricultural Policy Platform (FFTC-AP)

ABSTRACT

Rice accounts for the largest crop area, 7.15 mil hectares, in Myanmar; therefore, the demand for certified rice seed is high. The public sector supports seed production technologies for rice seed producer farmers through agricultural extension activities. This study aimed to assess the prospects of certified rice seed production in Myanmar with particular attention to the current production status and the roles of government and private-sector seed companies. In recent years, the private sector has become increasingly involved in rice seed production in Myanmar, and these systems are critical to seed sector development. Marketable certified rice seeds are available through contract farming with the private sector and coordination with contracted seed-producing farmers. The Ministry of Agriculture, Livestock and Irrigation encourages seed grower associations, private companies and collaborating farmers for seed industry development. Rice seed production is carried out through two systems: non-contract rice seed production and contract rice seed production in agreement with private seed companies. based on the results of cost and benefit analysis, contract seed producers were more profitable than non-contract producers, with a higher benefit-cost ratio from certified rice seed production in the study area SWOT analysis of contract rice seed production identified strengths for both contract seed producer farmers and private seed companies, as well as limiting factors that must be overcome for seed sector development. Farmers with greater seed-producing experience, membership in a seed grower association, and frequent meetings with seed companies were more likely to participate in contract farming. The price of certified rice seed strongly and positively influenced seed production profit. The number of seed-producing trainings and extension services provided by the Department of Agriculture positively affected seed-producing farmers' profits. This study identified policy recommendations for farmers, private seed companies, and the public sector to support more sustainable seed sector development. It is essential that stronger public–private partnerships should be promoted to ensure sustainable development of the seed sector, and farmers should be encouraged to participate more actively in seed production through collaboration with the private sector.

Keywords: Certified rice seed, contract and non-contract, private sector, public sector, seed production

INTRODUCTION

The agricultural sector in Myanmar contributes 23.6% of Gross Domestic Product (GDP) and 31.16% of total export earnings in 2023 - 2024. Rice is a major crop in Myanmar, grown in the monsoon season on 6.08 million hectares and in the summer season with irrigated water on 1.07 million hectares. The national average rice yield was 4.25 MT/ hectares, and total production was 30.43 million MT in 2023 – 2024. Rice production is also a major source of export income from surplus production. Rice accounts for the largest crop-growing area in Myanmar; therefore, the need for certified rice seed is high throughout the country. The Ministry of Agriculture, Livestock and Irrigation (MOALI) encourages seed grower associations, private companies, and collaborating farmers to develop the seed industry. Private seed companies produce and sell certified rice seed not only in their own fields but also in farmers’ fields through contract farming with local farmers (MOALI, 2024).

Marketable rice varieties are available through a contract farming system with the private sector, coordinating with contracted seed producers and farmers. The private sector is increasingly involved in rice seed production, which is critical for seed sector development in Myanmar. The Ministry has encouraged private-sector engagement in rice seed production and marketing in Myanmar since 2010 (LIFT, 2019). The public sector supports farmers through agricultural extension activities aimed at improving farming practices, seed production technologies, and enhancing agricultural productivity. Through the Department of Agriculture's (DOA) Regional, District, and Township Offices, the public sector provides technical support to rice seed producer farmers and facilitates discussions between farmers and private seed companies to encourage participation in contract farming. These activities are conducted collaboratively with the DOA public sector and private seed companies.

OVERVIEW OF MYANMAR RICE SEED PRODUCTION

Relevant departments under the Ministry of Agriculture, Livestock and Irrigation (MOALI) are responsible for implementing seed production activities. In Myanmar, the public sector Department of Agricultural Research (DAR) is responsible for producing breeder and foundation rice seeds. The Seed Division of the Department of Agriculture (DOA) produces registered seeds from foundation seeds in government seed farms. Registered seeds are used to produce certified seeds in local farmers' fields for commercial seed distribution. Normally, seed producer farmers and seed producer associations buy registered seeds from DOA seed farms and produce them to sell certified seeds. Private seed companies also produce breeder and foundation seeds for their own registered seed varieties. The government has improved the seed production program in collaboration with the private sector. In recent years, the rice seed production area has expanded significantly, and private-sector involvement in seed production has increased. In the early years (2015-2016 to 2018-2019), rice seed production was conducted on a relatively small scale. Since 2019-2020, the rice seed production area has expanded significantly, reflecting increased participation by public institutions, seed producer farmers, and private seed companies.

Table 1 shows rice seed production by public institutions, seed producer farmers, and private seed companies from 2015 to 2025. The total seed production area has increased from 857 hectares in 2015-2016 to 36,132 hectares in 2024-2025, while rice seed production rose from 1,754 MT to 163,936 MT over the same period. By sector, the farmers' sector accounted for the largest share of the total sown area after 2019-2020, followed by the private sector, while the public sector continued to play an important supporting role. Public-sector participation increased substantially, indicating a greater government role in rice seed production.  Overall, the data indicate that Myanmar's rice seed production sector has expanded significantly during the last decade, with increasing participation from multiple stakeholders. However, even if all currently produced certified seeds reach farmers, coverage is estimated at only about 50% of the national seed requirement.

Table 1 Seed production of the rice sector in Myanmar from 2015-2016 to 2023-2024

Source: Rice Division DOA, 2025 

Certified rice seed production by different regions of Myanmar (2023-2024)

This report examined certified rice seed production by region in Myanmar for the 2023-2024 growing season. The total rice seed production area reached 38,909 hectares, of which 20,340 hectares (52.3%) was cultivated by farmers, 5,620 ha (14.4%) by private seed companies, and 12,949 ha (33.3%) by the public sector. Among all states and regions, Bago Region recorded the largest rice seed production area with 13,086 ha, accounting for approximately 33.6% of the national total. This was followed by Mandalay Region (5,805 ha), Ayeyarwady Region (4,790 ha), Yangon Region (3,452 ha), Sagaing Region (3,259 ha), and Magway Region (3,242 ha), respectively. These regions are Myanmar's major rice seed production areas.

Table 2 presents the distribution of rice seed production area among farmers, private seed companies, and the public sector across the States and Regions of Myanmar during the 2023–2024 growing season. Myanmar's rice seed production was concentrated in the major rice-growing regions. The public sector made significant contributions in Ayeyarwady Region (4,761 ha), Mandalay Region (2,104 ha), Sagaing Region (1,958 ha), and Bago Region (1,503 ha), reflecting the expansion of public-sector-supported seed production activities. Also, rice seed production by seed producer farmers was in Bago Region (10,705 ha), Magway Region (2,624 ha), Mandalay Region (2,408 ha), Yangon Region (1,300 ha), and Sagaing Region (1,155 ha). Private seed companies mainly contributed to rice seed production in Nay Pyi Taw (1,641ha), Bago Region (878 ha), Mandalay Region (1,294 ha), and Yangon Region (1,632 ha).

Table 2. Rice seed production by States and Regions in Myanmar (2023 - 2024)

Source: Rice Division DOA, 2025

Certified rice seed production by contract and non-contract seed producer farmers

Rice seed production is carried out through two production approaches: as non-contract rice seed production by local seed producer farmers and contract seed production with private seed companies in Myanmar. Contract farming can be defined as an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices (Eaton & Shepherd, 2001)

Nyein et al. (2025) investigated certified rice seed production in Mandalay Region using SWOT analysis and identified strengths and opportunities for both contract seed producer farmers and private seed companies. The main strengths for contract seed producer farmers included access for advanced capital and technical support for seed production from both the public sector (DOA) and private seed companies. Moreover, it was found that contract seed producer farmers achieved higher yields than non-contract seed producer farmers. The seed company's strengths were rice seed production without purchasing land and the ability to meet local seed demand by expanding production.

However, the analysis also revealed several weaknesses and threats affecting both parties. Seed price instability at harvest time, limited irrigation water, and the requirement of a third party to negotiate between farmers and the company were limiting factors. Private seed companies also identified the high cost of investment in the seed business and limited market information on seed demand as key challenges. The public and private sectors are promoting contract farming for certified rice seed production because it delivers good returns for farmers and seed companies.

Table 3. Comparison of seed production costs between contract and non-contract rice seed producer farmers (2023-2024 monsoon season)

                                                                                                                                                                                                                                                               (Unit: USD/ha)

1 USD = 2100 MMK (Central Bank of Myanmar, Date- 30/11/2024)

Table 3 indicated the comparison between the costs of rice seed production among the contract and non-contract rice seed producer farmers. The results showed that non-contract seed producers incurred significantly higher costs, primarily due to expenses related to seed cleaning, packaging, and storage for market sales. The study also compared cost and return analyses of contract and non-contract rice seed producer farmers in the study area (Nyein et al., 2025).  Although non-contract farmers generally received higher average market prices for their seeds, not all farmers received high market prices, and market prices varied widely among non-contract seed producers. Contract seed producers achieved higher profits because they benefited from guaranteed prices from seed companies. The benefit-cost ratio (BCR) among non-contract farmers was inconsistent, with some achieving high profitability while others experienced lower returns. Overall, contract seed producers were more profitable than non-contract producers, with higher BCRs in certified rice seed production.

Therefore, it was necessary to know the factors affecting contract participation and profit in certified rice seed production. Therefore, the study extended the research to examine the factors influencing farmer participation in contract farming systems for rice seed production and the determinants of profit in rice seed production using Heckman two-step model analysis. The results showed that smallholder farmers were more likely to participate in contract farming, and the public sector should promote capacity building for smallholder farmers to support the long-term success of contract farming. The findings highlight several key factors influencing farmers' participation in seed contract production. Regarding contract participation, the results revealed that farmers with higher educational levels and those engaged in non-farm employment were less likely to participate in contract seed production. Conversely, farmers with greater seed-producing experience, membership in a seed grower association, and frequent meetings with seed companies were more likely to participate in contract farming. These findings suggest that seed producer associations are key for farmers in promoting participation in contract farming. Moreover, communication with private companies play an essential role in promoting contract participation among seed producer farmers.

Regarding profit from certified rice seed production, production costs such as hired labor, material costs, and machinery costs had negative effects, indicating that higher input costs reduce farmers' profit.  Meanwhile, the price of certified rice seed had a strong positive influence on profit, suggesting that better pricing incentives can increase farmers’ profit. Certified rice seed production in summer season in Mandalay Region had more profitable. In this study, the number of seed-producing training and extension services provided by DOA resulted in more profitable seed-producing farmers. A previous study also noted that public-sector extension services are important for farmers, and that technical training and closer supervision of quality seed production resulted in higher seed yields (Guei et al., 2012).

Online seed information system in Myanmar

The Myanmar Seed Portal provides a centralized online platform (http://www. Myanmar seed portal. gov.mm/  where users can use this as follows;

(a) Apply online for seed business registration.

(b) Access seed-related laws, notifications, orders, and directives.

(c) Obtain information and updates related to the seed sector.

(d) Access various seed-related services through a single online platform.

Private sector engagement in the seed business includes producing rice seeds for domestic use, importing seeds for the domestic market, and producing seeds for commercial export. Private-sector participation in various seed business activities facilitates these services and promotes the development of the seed industry. Relevant public-sector departments also support seed-sector development by providing technical assistance, establishing and enforcing regulations, and implementing seed laws (Seed Division, DOA, 2020). The DOA Seed Portal website allows stakeholders to submit online applications for seed business activities and provides access to seed-related laws, regulations, notifications, and directives.

The seed portal website also enables individuals and seed enterprises to conduct seed production activities by providing online access to registration application forms and other related services. This digital platform facilitates the application process and improves the efficiency and accessibility of seed business operations. This strengthens the regulatory framework and ensures the effective implementation and monitoring of contract farming and seed production activities. On 31st January 2020, the Ministry of Agriculture, Livestock and Irrigation announced Standard Operating Procedures (SOP) for contract farming in Myanmar, giving guidelines for farmers, private seed companies, and relevant public sector departments (MOALI, 2020).

CONCLUSION

The national average rice yield is still below the target yield (5.15 MT/ha). To achieve the targeted rice yield in Myanmar, the use of certified rice seed is a key factor in higher rice productivity. However, the current supply of improved and certified seeds has not yet reached a level sufficient to fully cover the total cultivated rice area. This indicates that the adoption and distribution of certified rice seeds remain limited. Based on the calculation of all rice seed production by the public, private seed companies, and non-contract rice seed producer farmers, the total rice seed production area was about 38909 ha; therefore, it is still insufficient to meet seed demand throughout the country. However, this study found that some non-contract seed producer farmers did not receive seed prices. This was because, although farmers produced seeds for certified seed purposes, weak market linkages often prevented them from reaching the formal seed market. As a result, despite completing the full seed production process, a considerable portion of the output is eventually sold as grain rice rather than certified seed.

This situation represents a significant challenge for the development of the seed production industry. Because certified rice seed production by farmers represents the largest share of the seed industry in the study area. Therefore, relevant departments should support non-contract rice seed producer farmers in establishing systematic market linkages so their certified rice seeds can reach the formal seed market. Moreover, seed production should be further strengthened and expanded through contract farming with private-sector involvement. In addition, rice farmers should be systematically encouraged and technically supported to adopt and use high-quality, certified seeds to enhance rice productivity.

Relevant public-sector departments should pay more attention to making seed production profitable for all farmers. Policymakers and agricultural development programs should therefore focus on capacity-building activities, effective pricing mechanisms, and extension support by the DOA public sector to sustain and expand certified rice seed production and seed sector development in Myanmar. Encouraging contract farming with private-sector engagement should continue, while non-contract farmers should receive cost-effective strategies, market linkages, and reliable market information. Such integrated efforts are vital for the sustainable development of certified rice seed production and for strengthening Myanmar's rice industry.

POLICY RECOMMENDATION

The study found that contract rice seed producer farmers were more profitable in contract farming with private seed companies in the study area, and that private-sector investment significantly contributes to employment and plays an important role in strengthening Myanmar's rice industry. Therefore, seed production practices through contract farming with the private sector should be more encouraged. Policies to promote contract farming should be strengthened through transparent contract agreements, fair pricing mechanisms, and effective monitoring of contract implementation. To help all non-contract seed producer farmers get higher market prices, the public and private sectors should provide marketing information and skills. Non-contract farmers should be provided with cost-effective strategies for more profitable seed production. The public sector should ensure continuous technical support for all seed producer farmers.

Summer rice seed production is more profitable in the study area and to ensure successful summer rice seed production, an adequate and reliable supply of irrigation water is essential. Therefore, relevant departments should prepare to ensure the timely availability and effective management of irrigation water, including proper planning and maintenance of irrigation infrastructure. Moreover, the public sector should ensure continuous technical support for all seed producer farmers. DOA extension and training programs should be continuously strengthened for local farmers. Promote stronger public-private partnerships to ensure sustainable development of the seed sector. Based on the study findings, the following recommendations are suggested to facilitate seed industry development. 

Policy recommendations for farmers for seed industry development

1. Encourage farmers to participate in contract rice seed production because it provides more economic returns.
2. Encourage farmers to participate regularly in technical training programs organized by seed companies and the Department of Agriculture (DOA) to improve their knowledge and skills in seed production.
3. Strengthen farmer cooperation through seed grower associations to access technical information and marketing opportunities. Organizing farmers should be done by relevant departments,
4. Engage in seed production. This would require farmers to ensure their certified rice seeds reach the market and are distributed effectively, with support from relevant departments.
5. Rice seed producer farmers should use registered seeds efficiently for seed production purposes.
6. Educate and encourage other farmers to use high-quality certified seeds for getting higher yield and avoid reusing grains as seeds.  

Policy recommendations for private sector seed companies for seed industry development

1. Establish transparent and mutually agreed-upon contract pricing mechanisms before the production season to reduce price uncertainty, and negotiate seed purchasing prices among relevant departments, seed companies, and contract farmers.
2. Supply quality registered seeds and production inputs at reasonable prices through collaboration with the public sector, and provide regular technical training, field supervision, and extension support throughout the production season.
3. Strengthen collaboration among seed companies, the Department of Agriculture (DOA), the Department of Agricultural Research (DAR), and other relevant institutions to ensure an adequate supply of registered seeds and support seed certification, technology transfer, and extension services.

Policy recommendations for relevant departments of the public sector for seed industry development

1. Strengthen collaboration among the Department of Agriculture (DOA), the Department of Agricultural Research (DAR), and private seed companies to produce registered and certified seeds and ensure a sufficient and reliable seed supply.
2. Strengthen agricultural extension services and provide continuous technical support to rice seed producer farmers.
3. Expand seed production training programs to enhance farmers’ technical skills, improve productivity, and increase profitability.
4. Promote seed grower associations and facilitate partnerships between farmers and seed companies.
5. Facilitate access to credit and agricultural inputs to help seed producer farmers meet production costs and provide long-term loans to seed companies to encourage investment in the seed business.
6. Promote farm mechanization and access to seed-processing equipment through public-sector support to improve production efficiency and reduce costs for non-contract seed producer farmers.
7. Conduct regular market surveys to identify the demand for different rice seed varieties and the quantities required in major rice-growing areas and prepare regional seed demand forecasts in advance to support efficient seed production planning.
8. Promote stronger public–private partnerships to ensure the sustainable development of the seed sector.

REFERENCES

Eaton, C., & Shepherd, A. (2001). Contract farming: partnerships for growth (Vol. 145). Food and Agriculture Organization.Guei, R. G., Barra, A., & Silue, D. (2012). Promoting smallholder seed enterprises: quality seed production of rice, maize, sorghum and millet in northern Cameroon. In Sustainable Intensification (pp. 91-99). Routledge.

Livelihoods and Food Security Fund (LIFT). (2019). Study on Incentive Mechanisms/ Public Private Partnership (PPP) Model in Seed Business in Delta Area.

Ministry of Agriculture, Livestock and Irrigation (MOALI). (2020). The Myanmar Government announces Standard Operation Procedures for contract farming.

Ministry of Agriculture, Livestock and Irrigation (MOALI). (2024). Myanmar Agriculture Sector in Brief. Department of Planning, Ministry of Agriculture, Livestock and Irrigation, Nay Pyi Taw. Myanmar.

Nyein Nyein Phyoe, Theingi Myint, Nyein Nyein Htwe, Honey Lynn Lynn. (2025a). SWOT Analysis of Contract Farming for Certified Rice Seed Production in Myanmar. Asian Research Journal of Agriculture. Volume 18, Issue 3, Page 492-501

Nyein Nyein Phyoe, Theingi Myint, Nyein Nyein Htwe, Honey Lynn Lynn. (2025b). The Cost and Return Analysis of Contract and Non-Contract Rice Seed Production Farmers in the Mandalay Region. Agricultural Policy Platform (FFTC-AP) https://ap.fftc.org.tw/article/3834. Rice Division, Department of Agriculture (DOA). (2025). National Rice Sown Area and average rice yield by States and Regions for 2023-2024 monsoon and summer season. Nay Pyi Taw. Myanmar.

Seed Division, Department of Agriculture (DOA). (2020). Seed Division, Department of Agriculture, Ministry of Agriculture, Livestock and Irrigation, http://www. Myanmar seed portal.gov.mm/