CASE STUDY

Funded by

Policies, Institutions and Processes to Support Value Chains for Seed Development for Pulses, Legumes and Oil Crops in the Dry Zone

Policies, Institutions and Processes to Support Value Chains for Seed Development for Pulses,

Legumes and Oil Crops in the Dry Zone

Developed as part of the project: An Integrated Rural Economic and Social Development Programme

for Livelihoods Improvement in the Dry Zone of Myanmar

CASE STUDY

Funded by

Copyright © CAPSA-ESCAP 2016 All rights reserved ISBN: 978-979-9317-83-4 Editing: Judith Shaw Graphic Designer: Fransisca A. Wijaya Cover Photo: Network Activities Group, Myanmar Disclaimer The views expressed in this report are those of the author and do not necessarily reflect the views of the Secretariat of the United Nations Economic and Social Commission for Asia and the Pacific. The description and classification of countries and territories used, and the arrangements of the material, do not imply the expression of any opinion whatsoever on the part of the Secretariat concerning the legal status of any country, territory, city or area, of its authorities, concerning the delineation of its frontiers or boundaries, or regarding its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names, commercial products and/or technologies does not imply the endorsement of the United Nations Economic and Social Commission for Asia and the Pacific. This document is supported with financial assistance from Australia, Denmark, the European Union, France, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Sweden, Switzerland, the United Kingdom, the United States of America, and the Mitsubishi Corporation. The views expressed herein are not to be taken to reflect the official opinion of any of the LIFT donors.

List of Tables ....................................................................................................................... v

List of Figures ................................................................................................................... vii

List of Boxes ...................................................................................................................... ix

List of Appendices ............................................................................................................. xi

Abbreviations ................................................................................................................... xiii

Foreword ........................................................................................................................... xv

Acknowledgements ........................................................................................................ xvii

Executive Summary ......................................................................................................... xix 1 Introduction ............................................................................................ 1

1.1 Agroecological condition ................................................................................... 1

1.2 Demographic condition and livelihood ............................................................... 2

1.3 Production and productivity of pulses, legumes and oil crops in the Dry Zone ................................................................................... 4

1.4 Introduction of improved seed ........................................................................... 5

2 Purpose, Approach and Methodology of the Case Study ..................... 11

2.1 Purpose .......................................................................................................... 11 2.2 Approaches .................................................................................................... 11 2.3 Methodology ................................................................................................... 12

3 Institutional Setting and Enabling Policy Environment

for the Seed Industry ............................................................................. 13

3.1 Institutional setting for varietal improvement ................................................... 13

3.2 Policies, laws and regulations for seed development ...................................... 15

3.3 Value chain map of seed sector ...................................................................... 17

Contents

iii

4 Impact of Policies on the Seed Value Chain ......................................... 19

4.1 Seed production, multiplication and distribution system .................................. 19 4.2 Quality assurance of the seeds and infrastructure development ..................... 20 4.3 Perspectives from demand and supply sides for low use

of certified seeds ............................................................................................. 22 4.4 Seed marketing ............................................................................................... 23 4.5 Establishment of village seed banks ............................................................... 24 4.6 Research and extension linkages ................................................................... 25

5 Effect of Processes and Institutions on the Impact of

Policies on the Seed Value Chain ........................................................... 27

6 Strength, Weakness, Opportunities and Threats in Development of Seed Value Chain ....................................................... 31

7 Summary of Findings ............................................................................ 33

8 Recommendations ................................................................................ 35

9 Conclusions ........................................................................................... 39

References ........................................................................................................................ 41

iv

Table 1.1 Land area, population and its density by states and regions (2013-2014). ...................................................................................... 3

Table 1.2 Farm area of household holding ..................................................................... 3

Table 1.3 Harvest area, productivity and production of pulses and oil crops in the Dry Zone ................................................................................ 5

Table 1.4 Sown area of pulses and oil seed crops (’000 ha) .......................................... 6

Table 1.5 Yield of pulses and oil seed crops (mt/ha) ...................................................... 7

Table 3.1 Seed development projects implemented in Myanmar ................................. 14

Table 3.2 Legislation related to development of seed industry ..................................... 16

Table 4.1 Quality seed of pulses and oil crops distributed by MoAI .............................. 21

Tables

v

Figure 1.1 Sown area and production of oil crops ........................................................... 6

Figure 1.2 Sown area and production of pulses .............................................................. 8

Figure 3.1 Value chain map of seed development (pulses and oil crops) in the Dry Zone ............................................................................................ 17

Figure 4.1 Public seed multiplication and distribution system ........................................ 19

Figure 4.2 Perspective from demand and supply sides on the low use of certified seed ............................................................................... 23

Figure 5.1 Certified seed sample bag from seed farm ................................................... 28

Figures

vii

Box 1 SWOT analysis of seed value chain in the Dry Zone of Myanmar .................................................................................. 31

Boxes

ix

Appendix 1 Modern Varieties of Seed Released ............................................................. 43

Appendix 2 National Seed Committee and Technical Seed Committee Members ................................................................................... 46

Appendix 3 Seed Farms under the Department of Agriculture ...................................... 48

Appendix 4 Research Farms under the Department of Agricultural Research .................................................................................. 49

Appendix 5 Seed Processing Plants Constructed with the Assistance of Seed Development Projects in Myanmar (1986) .......................................... 50

Appendix 6 Botanical and Vernacular Names of Grain Legumes Grown in Myanmar ...................................................................................... 51

Appendices

xi

ACIAR Australian Centre for International Agricultural Research

AED Agricultural Extension Division

CARI Central Agricultural Research Institute

CP Charoen Pokphand

CYMMIT International Maize and Wheat Improvement Center DAR Department of Agriculture Research

DoA Department of Agriculture

FAO Food and Agriculture Organization of the United Nations

IAEA International Atomic Energy Agency IBPGR International Board for Plant Genetic Resources

ICRISAT International Crops Research Institute for the Semi-Arid Tropics

IPGRI International Plant Genetic Resources Institute

IRRI International Rice Research Institute

JICA Japan International Cooperation Agency

MoAI Ministry of Agriculture and Irrigation

NSC National Seed Committee

PPP public-private partnership PVP plant variety protection RSC Rice Specialized Company

SPS Sanitary and Phytosanitary

SWOT Strengths, weaknesses, opportunities and threats

TRIPS Trade-Related Aspects of Intellectual Property Rights UMFCCI Union of Myanmar Federation of Chambers of Commerce and Industry

UPOV International Union for the Protection of New Varieties of Plants VSB Village-based Seed Bank

Abbreviations

xiii

The Dry Zone of Myanmar suffers from high levels of poverty and food insecurity. Agriculture is an important source of livelihood but rainfall is concentrated in a few months of the rainy season with erratic duration and wide deviation in annual precipitation. This meteorological character makes the Dry Zone especially vulnerable to the impacts of climate change. Climate change is also aggravating the adverse effects of land and environmental degradation leading to poor and fragile soils. The most severely affected are poor, rural families who depend on agriculture for food, nutrition as well as livelihood. Strengthening the sustainability and climate-resilience of agriculture in the Dry Zone, with a focus on smallholders and other vulnerable communities, is thus of critical importance for ensuring food security and income stability. The development of appropriate policies is of paramount significance for the sustainable development and improvement of livelihoods in the Dry Zone. Policymaking and implementation, however, is a complex and incremental process that requires continuous interaction between the state and civil society, including the private sector. It requires knowledge of the stakeholders involved and activities that they are implementing on the ground as well as an understanding of the strengths and weaknesses of existing policies, institutions and policy formulation and implementation processes so that technical and capacity- building gaps that need to be addressed can be identified. This report is a part of a series of case studies produced by the United Nations Economic and Social Commission for Asia and the Pacific to undertake mapping of relevant stakeholders and assessment of their interventions in the Dry Zone as well as analyse policies, institutions and processes for areas that are important for the sustainable development of the Dry Zone. Based on multi-stakeholder consultations conducted in Myanmar, the case studies have focussed their attention on the following areas: (i) Value chains for seed development for pulses, legumes and oil crops (ii) Agricultural mechanization development (iii) Sustainable agriculture for poverty reduction We sincerely hope that the case studies will serve as valuable knowledge resources for practitioners and decision makers in government, civil society and the private sector in Myanmar and support their efforts to promote sustainable and climate-resilient agriculture in the Dry Zone. Masakazu Ichimura Director Centre for Alleviation of Poverty through Sustainable Agriculture United Nations Economic and Social Commission for Asia and the Pacific

Foreword

xv

This report was prepared by Mr. Tin Maung Shwe, Senior Economist, Agribusiness and Rural Development Consultants, Yangon, Myanmar, under a consultancy assignment from the Asian and Pacific Centre for Transfer of Technology (APCTT) of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The core team that supervised the preparation of this report consisted of the following ESCAP staff members: Krishnan Srinivasaraghavan, Satyabrata Sahu, Anshuman Varma and Takashi Takahatake. The team also appreciates the inputs, comments and suggestions received from the staff of the United Nations Office for Project Services Myanmar and the Network Activities Group, Myanmar during the preparation of this report. The information presented in this report was prepared mostly by desk study through collecting reports and published information/data from related government and non-governmental institutions including electronic publication as well as through a field visit to the Dry Zone in Myanmar as part of the consultancy assignment. We would like to thank the European Union and governments of Australia, Denmark, France, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Sweden, Switzerland, the United Kingdom, and the United States of America for their kind contributions to improving the livelihoods and food security of rural people in Myanmar. We would also like to thank the Mitsubishi Corporation, as a private-sector donor.

Acknowledgements

xvii

The Dry Zone in Myanmar, due to its geo-climatic conditions, faces many challenges that are often aggravated by adverse effects of climate change such as low rainfall, soil erosion, land degradation and decreased nutrient availability in the soil. Together, these factors contribute to reduced crop yield and a decline in soil fertility. Due to the adverse climate conditions, crops that are resistant to drought and have potential to yield higher incomes in the short term are favoured by farmers in the Dry Zone. Pigeon pea is mostly used as a base crop in the Dry Zone. More than 90 per cent of the seeds used in farmers’ fields are farm-saved seeds, even though many improved varieties have been developed for a large number of crops. Availability of good quality seeds that are adapted to different agroecological zones is critical for increasing the yield, as well as for improving the quality of grains from an export perspective. In Myanmar, the Seed Law was enacted in 2011. The development and approval of procedures and regulations to implement a law are normally done within 2 years. However, the regulations of the Seed Law 2011 were only ratified on 23 February 2016. As such, the official regulations for registering and certifying seeds have only recently been established. Almost all the farmers have no access to the required quantity and quality of seeds, but are still using the grains with their own traditional way of selection. The current low use of improved certified seed is a reflection of both demand and supply factors. Supply side issues include: (a) underfunded research, (b) low capacity of extension services, (c) lack of investment in seed production, processing and storage for pulses and oil crops, (d) relatively low capacity of growers, technicians and researchers, and (e) lack of incentives for growers and companies to engage in seed production. On the demand side the important issues are: (a) lack of awareness and knowledge among farmers, (b) high cost and risk, (c) limited market access for quality products, (d) inadequate quality assurance, and (e) unclear benefits from the use of improved seed. The Seed Law, Plant Variety Protection (PVP) Law and Procedure for the Implementation of Seed Law are the key policy instruments supporting seed value chain development in the Dry Zone. Some opportunities do exist to improve the seed value chain, through public–private partnership in contract farming, foreign direct investment in quality seed production and so on. Increasing farmers’ awareness of crop productivity and quality, demand for quality seeds and private-sector investment in quality seed production could result from the effective implementation of the Seed Law. However, bottlenecks include the lack of a fully functional national seed policy, lack of adequate incentives for the private sector to invest in quality seed production and a lack of interest from public sector in seed enterprise development, especially in pulses and oil crops.

Executive Summary

xix

There is a huge opportunity to improve the situation through collaboration with international research institutions to develop new and improved seed varieties. However, the current budget allocation is insufficient to support seed research and development in the country. In addition, there are a wide range of issues such as lack of technical know-how, lack of adequate institutional infrastructure for seed research and education and lack of seed grower associations that hinders the seed sector development in the country. Overall, the current systems for seed production and distribution and the associated extension services are not able to meet the requirements of farmers. A shift in the policy approach from the current top-down structure to a bottom-up approach with the active involvement of stakeholders from the grass-roots level is essential for strengthening the value chain for seed enterprise development in the country. To further streamline the institutional arrangements to support this transformation, there is an urgent need to establish a Myanmar Seed Industry Association. It is also recommended that increased financial support to research and development, improving the capacities of key stakeholders including the agricultural extension staff, and upgrading seed laboratories at both central and regional level are major steps towards strengthening the value chain for the seed development for pulses, legumes and oil crops.

xx

1.1 Agroecological condition Geographically, the Dry Zone extends between latitudes 19o and 23.5o north and between longitudes 94o and 96.5o east. This zone is located in the Central Basin of Myanmar and consists of three regions: Magway, Mandalay and the lower part of Sagaing. The central and northern portions of Bago Yoma lie in the southern part of the zone and small mountain ranges occur in the northern part. Besides these mountain ranges, most of the areas within the zone are lowlands. Precipitation is mostly confined to the period from mid-May to October; a dry cool spell occurs from mid-October to mid-February; and the dry season runs from mid-February to mid-May. The rainy season can be typically divided into three periods: the early monsoon season from May to June, the mid-monsoon (July to August) and the late monsoon (September to October). The early monsoon lasts approximately 40 days and during the period most areas of the Dry Zone receive precipitation, but this is below the national average. The mid-monsoon season lasts on average 30 days and a dry spell usually occurs in July. The late monsoon usually extends over from September to the end of October and provides the necessary precipitation to sustain rain-fed agriculture. Thus, the monsoon rains are concentrated over a period of 5 to 6 months in a bimodal pattern during May to October, with an interruption during the month of July due to dry desiccating winds blowing from the south. In Dry Zone area, the rainfall level is noticeably low ranging from 600 mm to 1,400 mm. Frequent drought is experienced even in both early and late monsoon periods due to climate change effects that cause the dry spell to last longer. Cultivation of pulses/food legumes and oil crops relies on rain. Their cultivation is a gamble for the farmers because production levels are dependent on the highly variable weather and there is a high risk of failure. To overcome, to some extent, the scarcity of water, the government invested in the establishment of irrigation schemes, such as the construction of reservoirs and weirs across the tributaries flowing to the Ayeyarwaddy and Chindwin rivers, and also installing pumping irrigation stations, where feasible, along the side of the rivers. The dominant land use of this zone is agricultural, which covers 64 per cent of the total area. The dominant soil types are soil types S2, S4 and S5, mainly red-brown savanna soils and yellow-brown and red-brown forest soils. Distinct fertile volcanic soils, known as Popa soils,

1 Introduction

1

are found near Mount Popa. The soils clearly vary with topography. According to observations, all soil series have low fertility and declining organic matter levels. Potassium levels are similarly low. Nitrogen is required for all non-legume crops on all soil types. The soil organic matter level is low, so the moisture-holding capacity of the soils of the Dry Zone is low. With high levels of evapotranspiration, the dry spell in July presents major constraints to crop growth in the Dry Zone. Management practices that conserve soil moisture or increase the water-holding capacity of the soils are being practised to help take advantage of the full growing season. Hard pan formation is common to all upland areas. Wind erosion is a particularly severe problem, while sheet and gully erosion are largely confined to wasteland areas. Soil erosion and land degradation are together responsible for declining production potential. Some of the cultivable farmland is seasonally fallowed to improve soil fertility or because of unfavourable weather. In the Dry Zone, a diverse range of combinations and sequences of cropping patterns are found. There is a wide variation of soil and rainfall patterns between townships, and villages within townships, which has a marked influence on the selection of species, varieties and combinations of intercropping and sequential cropping. The early monsoon rain is recognized as less reliable with sudden stops or delays that often result in complete crop loss. The approach adopted by some farmers is to skip the optimum date of planting at the onset of the monsoon and either wait until the late monsoon period or extend the duration of sowing. Intercropping is practised as a risk-reduction strategy, where at least two crops are grown on a plot and the costs of cultivation are shared. Pigeon pea is mostly used as the base crop. Choosing drought-resistant and short-lived varieties of pulses and oil crops is common in order to catch available soil moisture during the growing period. Because of shortfalls of normal rain, farmers may lose their seed and try to buy replacement seed wherever available, even from the wholesale centres/traders from stock for trading. Therefore, short-lived, high-yielding and certified seed varieties are essential inputs that should be stored in reserve in the Dry Zone.

1.2 Demographic condition and livelihood Population density is positively correlated with areas which have natural resource potential and opportunity for economic activities, as well as the existence of social factors such as close relatives, same tribe, customs, etc. Variation of population density across the state/region is very large. Among three Dry Zone regions, the highest population density/sq. km is found in Mandalay at 161, followed by Magway and Sagaing at 87 and 57, respectively (Republic of the Union of Myanmar, 2014). In Sagaing, the area located in the upper part region is covered with forest, consequently population density is comparably lower than that of other Dry Zone areas. With regard to rural and urban population, the proportion of rural population in all three regions is high as 85 per cent in Magway, 65 per cent in Mandalay and 83 per cent in Sagaing. The highest rural population ratio is found in Magway. The population census (Republic of the Union of Myanmar, 2014) indicates that the average household size in Magway, Mandalay and Sagaing is 4.1, 4.4, 4.6 members, respectively. The dry climate and erratic rainfall results in low crop yields. The resulting low income from farming is insufficient to cover household expenditures. There are also very few

2

opportunities locally for non-farm employment and non-farm income-generating activities. This results in seasonal migration to urban areas within and outside the zone during the off-farm season and drought periods. Marginal farmers, the landless and male youth, particularly of smaller farm-size households, tend to migrate to urban centres for construction work, or to higher potential agricultural areas and even outside the country.

Table 1.1 Land area, population and its density by states and regions (2013-2014)

Sr. no. Regions Area

(sq. km.) Total

population (’000)

Male population

(’000)

Female population

(’000)

Proportion of total

population

Population density/ sq. km

1. Magway 44 821 3 912 1 815 2 097 7.61 87 2. Mandalay 37 935 6 145 2 920 3 225 11.95 161 3. Sagaing 93 713 5 320 2 518 2 802 10.34 57

Union Total 676 578 51 419 420 24 821 176 26 598 244

Source: Myanmar Population and Housing Census (2014)

As data and information indicated in Agriculture Census (2010; Ministry of Agriculture and Irrigation, 2013), average agriculture holding per farm household in Magway, Mandalay and Sagaing is 5.57 acre (2.25 ha), 4.97 acre (2.01 ha) and 8.57 acre (3.47 ha), respectively. The average size of agricultural holding in Sagaing is above the union average (6.34 acre or 2.57 ha), less in the remaining two regions. Table 1.2 shows agricultural holdings in Magway, Mandalay and Sagaing, and farm-holding size.

Table 1.2 Farm area of household holding Sr. no. Region No. of farm

households Area of household

holding (acre) Average area/holding

(acre)

1. Magway 590 978 3 289 491 5.57 2. Mandalay 728 228 6 615 997 4.97 3. Sagaing 748 168 6 368 800 8.57

Union 4 986 672 31 615 097 6.34

Source: Ministry of Agriculture and Irrigation (2013) Small-scale livestock income generation (pig fattening, poultry, goat breeding) and traditional cottage industries, such as weaving, handicrafts and jaggery production are alternative income-generating activities, which help to reduce risk to household income from farming. Small-scale livestock activities are popular with farmers, women and landless groups in the zone. The weaving of nipa shingles, bamboo wall sidings and mats are commonly practised, comparatively cheap, easy to handle and can be produced during off-farm periods. The prospect of local employment opportunities from farming and off-farm enterprises is increasing after the liberalization of agriculture and the market economy in 2003. Many poor people in Myanmar have only input (i.e. labour). The report of Integrated Household Living Condition Assessment (Ministry of National Planning and Economic Development et al., 2011) states that a quarter of people in Myanmar are poor while the poverty ratio is 23.0 in Mandalay, 23.1 in Magway and 15.3 in Sagaing. Seasonal and permanent migration from the Dry Zone is continuing, since alternative income-earning opportunities are more

3

attractive in countries such as Thailand and Malaysia. Migration is likely to continue as a coping mechanism for low-income families owing to the high risks of rain-fed farming. Farmers are keen to diversify their sources of income and employment from full reliance on farming.

1.3 Production and productivity of pulses, legumes and oil crops in the Dry Zone

Increased production and productivity is required if agriculture is to deliver growth and reduce poverty. Production and utilization of high-yielding and good quality seed is included in the focus of Ministry of Agriculture and Irrigation1 as a priority for modernization and increased production. However, the use of improved seed for crop production is very low, severely limiting the potential of the crop sown. While shortage of finance for farmers who grow pulses and oil crops may play a major role in the low usage of fertilizer and low uptake of suitable seeds, even more importantly, an inability of many poorer farm households to assume the risk (due to weather and other factors) involved in purchasing such seeds, is a key factor (Myanmar Dry Zone Development Program, 2014). The overall performance of the present system is not in line with the objectives of the agricultural policy. More than 90 per cent of the seed used in farmers’ fields is farm-saved seed, also called farmer’s selection from the grain, even though many improved varieties have been developed for a large number of crops (see Appendix 1). In addition, for vegetables and hybrid maize, a more advanced private production and marketing system has been developed while for most other crops the performance of the seed value chain is rather limited (Wageningen UR, 2015). About 18 different varieties of pulses (Appendix 6) are grown in Myanmar. Among these, improved varieties of black gram, green gram, pigeon pea, chickpea, cowpea and soybean which have been mostly developed by public sector research farms contribute approximately 75 per cent of total production, while indigenous varieties maintained by the farmers for many years cover the remaining 25 per cent of total production. Likewise, the Dry Zone area contributes a large sown area of oil crops such as sesame, groundnut and sunflower to the country’s overall production. The primary crops grown in the Dry Zone are rice (22% rain-fed and 29% irrigated of the national total), oil crops (89% of sesame, 69% of groundnut, 70% of sunflowers) and pulses (93% of pigeon pea and 97% of chickpea) (Mercy Corps, 2015). In the case study regions (Magway and Mandalay), among the various types of pulses/legumes, green gram, pigeon pea, chickpea and cowpea occupy larger portion of sown area such as 40, 58, 50 and 30 per cent of total sown area, respectively. Oil crops, such as sesame (65% of total sown area) and groundnut (35% of total sown area), are also a major source of income for farmers in dryland farming. Since 1988, the market economic policy has allowed food legumes to be exported. Export of pulses increased drastically after 1996-1997. Most of the pigeon pea, black gram, green gram, chickpea and lentil crops are exported to India, Pakistan, Singapore, Japan, Malaysia, Indonesia, Bangladesh, UAE, Korea, Hong Kong and the Philippines. Export of Myanmar pulses increased from 17,000 metric tons in 1988-1989 to 1 million metric tons in 2001-2002

1 The Ministry of Agriculture and Irrigation was renamed as the Ministry of Agriculture, Livestock and Irrigation in April 2016.

4

due to the liberalization policy. However, export of oil crops was restricted, with the intention of making Myanmar self-sufficient, until 2011, which is reflected in the slow growth in sown area as well as production. The sown area, production and productivity of pulses and oil crops in Dry Zone is shown in Table 1.3.

Table 1.3 Harvest area, productivity and production of pulses and oil crops in the Dry Zone

Region Crop Harvest area (’000 ha) Yield (kg/ha) Production

(’000 mt)

Magway Green gram 309 1 220 376 Pigeon pea 177 1 497 265 Chickpea 91 1 526 1 388 Cowpea 18 1 102 20 Groundnut 195 1 803 352 Sesame 566 686 388 Sunflower 171 1 008 172

Mandalay Green gram 123 869 107 Pigeon pea 171 995 170 Chickpea 98 1 126 110 Cowpea 2 667 1 Groundnut 167 1 282 214 Sesame 348 257 89 Sunflower 52 975 51

Sagaing Green gram 169 1 294 219 Pigeon pea 558 1 514 845 Chickpea 432 1 628 703 Cowpea 14 1 020 14 Groundnut 753 1 660 1 250 Sesame 1 108 716 794 Sunflower 493 1 019 503

Source: DoA (2015)

1.4 Introduction of improved seed The liberalized policies on lifting the government procurement system (except for paddy) from 1988 had an even greater impact on non-paddy crops, particularly pulses and oilseeds. The pulses trade has been liberalized since 1990. The sown area of exported pulses (black gram, green gram and pigeon pea) grew rapidly by about 10 per cent per annum over the decade 1990/91-2000/01, from 1 million ha to 2.27 million ha, while production increased nearly fourfold, from 596,000 mt to 2,263,000 mt during the same period. The area and yield of pulses has continued to grow steadily since then (see Tables 1.3 and 1.4) helped by price incentives to farmers. Despite their growth, yields have remained low at less than 1.0 mt/ha since these crops are grown mostly under rain-fed conditions with generally poor seedling establishment and limited application of fertilizers, pesticides and insecticides (MoAI, 2014). Pulses and beans have become important to the rural economy of Myanmar not only for

5

their income-earning potential, but also because of their dietary contribution. The three pulse crops: green gram, black gram and pigeon pea also accounted for over 80 per cent of total export value of crops. Edible oil is the second most important food item in the traditional diet of Myanmar, which is still importing palm oil to meet domestic demand. Oilseed crops were planted on approximately 3.0 million ha in 2012-2013, largely in the Dry Zone of Central Myanmar. Sesame accounts for roughly 51 per cent of the area sown to oil crops, with a further 30 per cent taken by groundnut and 16 per cent by sunflower. Data in Tables 1.3 and 1.4 show that the sown area of oil crops increased until 2009-2010, after which it declined slightly, except for groundnut. While yields have increased since 2000-2001, the increase has been much less than in the case of pulses.

Table 1.4 Sown area of pulses and oil seed crops (’000 ha)

Crop name 1995/96 2000/01 2009/10 2010/11 2011/12 2012/13 2013/14

Black gram 474 620 1 023 1 055 1 090 1 108 1 102 Green gram 460 742 1 077 1 121 1 098 1 087 1 123 Pigeon pea 250 362 616 633 644 613 639 Chickpea 166 166 224 332 333 362 Groundnut 527 590 866 877 887 912 931 Sesame 1 276 1 424 1 634 1 585 1 595 1 553 1 622 Sunflower 221 518 883 859 543 496 481

Source: MoAI (2014) The sown area, harvested, yield and production of oil crops (groundnut, sesame, sunflower) are shown in Figure 1.1.

Figure 1.1 Sown area and production of oil crops

0

500

1000

1500

0

200

400

600

800

1000

95/96 00/01 05/06 08/09 09/10 10/11 11/12

Prod

uctio

n MT

('000

)

Sown

Ha (

'000)

Sown Area and Production of of Groundnut

Sown Ha Production(MT)Production (MT)

6

Source: MoAI (2013)

Table 1.5 Yield of pulses and oil seed crops (mt/ha)

Crop Name 1995/96 2000/01 2009/10 2010/11 2011/12 2012/13 2013/14

Black gram 0.78 0.87 1.48 1.52 1.26 1.40 1.43 Green gram 0.74 0.74 1.24 1.26 1.22 1.28 1.29 Pigeon pea 0.60 0.90 1.25 1.32 1.32 1.31 1.33 Chickpea 0.59 0.73 1.18 1.41 1.42 1.45 1.49 Groundnut 1.15 1.25 1.57 1.59 1.58 1.59 1.60 Sesame 0.34 0.33 0.53 0.54 0.57 0.56 0.57 Sunflower 0.76 0.54 0.89 0.92 0.93 0.94 0.96

Source: MoAI (2014) Seed is the most crucial determinant of crop production potential, on which the efficiency and effectiveness of other agricultural inputs are dependent. Increased and sustained agricultural productivity is dependent mainly on development of new and improved crop varieties, efficient seed distribution and proper utilization of seed. Utilization of good quality seed which is adapted to different agroecological zones is crucially important to increase yield as well as to improve quality of grain to access key markets. Quality sunflower seeds for edible oil extraction were introduced from Russia in 1971. Trial tests for adaptability were performed in different locations, mostly in Sagaing, Magway, Mandalay, Bago, Yangon and Ayeyarwaddy. The selected seeds were grown in seed farms for multiplication and certified seeds were distributed to farmers through the Extension Division of the Department of Agriculture (DoA). The growing area of sunflower oil seed varieties increased from 800 ha in 1971-1972 to 859,000 ha in 2010-2011 across the country (Saing and Ngwe, 2011; MoAI, 2012). However, sown area decreased to 496,000 ha in 2012-2013. Three main varieties, namely Sunfolar, Sin Shwe Kyar and Dokhit were commonly grown covering most of the sunflower total sown areas. Hybrid sunflower seed was bred at the Department of Agricultural Research (DAR) and distributed to farmers (DAR, 2007). The sown area, harvested, yield and production of black gram, green gram and pigeon pea are illustrated in Figure 1.2. The production of pulses has been stagnant for the last 3 years

0100200300400500600700800900

0100200300400500600700800900

1000

95/96 00/01 05/06 08/09 09/10 10/11 11/12

Prod

uctio

n MT

('000

)

Sown

Ha (

'000)

Sown Area and Production of Sunflower

Sown Ha Production(MT)Production (MT)

7

while the growth trends for sown area and yield are not significant. The existing certified seed programme works in such a way that farmer seed banks cover a small area because of constraints in the seed multiplication system. Therefore, the area of improved varieties of pulses is small, resulting in stagnant yield growth. The sown area is also limited due to diversification of crops in the Dry Zone; mung bean is being grown as second crop after paddy in Ayeyarwaddy and Bago regions. Therefore the production growth trend is stagnant.

Figure 1.2 Sown area and production of pulses Source: MoAI (2013)

Long-lifespan indigenous varieties (with a lifespan of 5 to 6 months for harvesting and in which pods are borne from the nodes of spread stalk, as compared to modern varieties which only have a lifespan of approximately 4 months) of groundnut were mostly grown in Central Myanmar during the monsoon season before 1954. Improved varieties of short-lived erect-type groundnuts were introduced and adaptability trial tested at the seed farms located in Central Myanmar. The Spain-121 variety was released by the DoA, and was widely grown as a second crop after paddy from 1954, replacing indigenous groundnut varieties in most areas. Promising groundnut varieties were received annually from International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), one of the international research institutions, during the period 1992 to 2002, and were tested and bred at DAR and outreach research stations. Quality varieties, namely Sin Padethar lines 1 to 9, were bred and released. Their uptake is currently increasing.

Source: MoAI (2013) However, the supply of certified seed to farmers is minimal and the need for improved seed is high, as noted in the Scoping Report of Dry Zone Development Program (2014) produced

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by the Food and Agriculture Organization of the United Nations (FAO) Investment Centre. Current availability of improved seed to farmers is negligible and there is a perceived risk among farmers in changing from their traditional varieties, many of which have been grown for long periods without even basic purity checks, with a commensurate decline in yield and vigour. Furthermore, climate change has affected the performance of the local varieties necessitating their replacement with improved shorter duration and drought-tolerant cultivars.

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2.1 Purpose The purpose of this case study is to enhance the capacity of t policymakers and provide an understanding of the strengths and weaknesses of various policies, institutions and processes related to value chains for seed development of pulses, legumes and oil crops in the Dry Zone of Myanmar. The specific expected outputs are: (i) Identification of problems and priority issues that are facing the Dry Zone in relation to

value chains for seed development for pulses, legumes and oil crops. (ii) Evaluation of the overall strengths and weaknesses of key policies influencing value

chains for seed development, as well as the main institutions (or governance structures) and processes involved in formulation and execution of such policies.

(iii) General recommendations for improving the existing policy scenario, as well as the institutions and processes involved in the formulation and implementation of the policies.

In addition, cross cutting issues such as research and extension linkages, and private-sector participation are addressed in the analysis of the case study.

2.2 Approaches National policies and strategies, institutions and implementation processes related to the value chain for seed development were reviewed. Meetings and discussions with rural communities were held to assess socioeconomic conditions and poverty in rural areas. In order to understand agribusiness information, such as marketing, distribution, trading and other business activities, discussions at central and township level were held with representatives of the Myanmar Pulses, Beans and Sesame Seeds Merchants Association, which is a member of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). Reports, project outputs and documents on the socioeconomic condition of Dry Zone areas by INGOs, NGOs and development partners were reviewed as references to support the case study. Since public–private partnerships (PPP) play an important role in the development of the seed industry, related information and data were collected through meetings and discussions

2 Purpose, Approach and

Methodology of the Case Study

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with authorities from central as well as regional-level government agencies, particularly the Ministry of Agriculture and Irrigation (MoAI), and with research and seed farms, and private entrepreneurs. Production of seeds from seed farms for pulses, legumes and oil crops, research expenditure, capacities of seed production and function of seed distributions were observed and reviewed from the perspective of research and extension linkages to develop the seed sector. Challenges and suggestions of key informants at the farm level on policy, institutions and processes in the context of seed industry development were identified and utilized in problem analysis of the case study.

2.3 Methodology With respect to the ultimate goal of improved livelihoods, and social and economic development in the Dry Zone, the target beneficiaries are farmers who are key stakeholders in the value chain for seed development. Most farmers in Magway and Mandalay are major producers of pulses, legumes and oil crops. As part of the informal seed system, farmers’ own grains are taken as seeds and are shared or distributed among other farmers, due to a lack of formal private seed investment on pulses, legumes and oil crops. By the Seed Law 2011 farmers who produce seed in cooperation with the Department of Agriculture (DoA) have the right to sell or distribute the seeds to other farmers and are also exempted from needing a licence to do so. The actors who engage along the value chain of seed and associated activities were identified to establish a seed value chain map. The value chain of the seed sector was analysed to understand the constraints and weak links along the chain. A strengths, weaknesses, opportunities and threats (SWOT) analysis of existing policies, institutions and processes was conducted. Based on the analysis, recommendations are made to streamline policy, institution and processes (implementation).

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3.1 Institutional setting for varietal improvement Research and development activities, including seed development, were strengthened after the establishment of Central Agricultural Research Institute (CARI) at Yezin in the central part of the country in 1974. Collaborative research activities for agriculture were carried out between CARI and various international research institutions, ICRISAT for groundnut and pulses, International Atomic Energy Agency (IAEA) for mutation breeding, International Plant Genetic Resources Institute (IPGRI), Japan International Cooperation Agency (JICA) and others. With technical assistance and provision of planting materials from international research institutions, testing, selection and hybridization were conducted at CARI and new improved seeds of maize, sunflower, groundnut, sesame and pulses were released to be utilized in adapted areas. The Food Legumes Research Division was established in 1976 and the necessary research plans were laid down according to immediate and long-term needs. After the establishment of the Food Legume Research Division, National Pulses Development Programmes were established through the launch of the Crop Development Project and the Food Crop Development Project. Subsequently, Myanmar became a member country of Cereals and Legumes Asian Network (CLAN), a collaborative activity with ICRISAT. A varietal improvement programme for 16 varieties of pulses was also carried out at DAR, in collaboration with ICRISAT. Major exporting items were black gram, green gram and pigeon pea. Three improved varieties of black gram, five varieties of green gram and four varieties of pigeon pea were released from DAR. DAR is cooperating with the Australian Centre for International Agricultural Research (ACIAR) in varietal trials on green gram, sesame, groundnut, pigeon pea and chickpea in the Dry Zone area to demonstrate to farmers which variety is most adaptable and acceptable locally. The varietal trials are being conducted in Monywar and Yinmarbin townships in Sagaing region, Myingyan and Nyaung Oo townships in Mandalay region, and Magway, Pakhokku and Minbu townships in Magway region. Under this 5-year project, an assessment of the economic viability of selected varieties will be conducted by the Agriculture Economics Department of Yezin Agricultural University.

3 Institutional Setting and

Enabling Policy Environment for the Seed Industry

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A seed bank was established in 1990 in DAR with the assistance of JICA. This has allowed for the collection of the indigenous crop varieties, exchange of germplasm with other international research institutions and long-duration store accessions for to support breeding programme for production of improved seeds. The function of the Seed Bank is to plan and implement a national programme for the collection, multiplication, evaluation, conservation and data management of plant genetic resources. The regional agricultural research farms and stations collaborate to form a countrywide network for this purpose. At present, there are about 8,000 accessions of 15 different crops, including 710 accessions of peas and beans under short-term storage and 700 accessions of peas and beans under medium-term storage. Genetic materials are provided only under the Material Transfer Agreement without legal protection. Under this agreement, DAR has a ramified system with international research organizations, such as the International Rice Research Institute (IRRI), ICRISAT, the International Board for Plant Genetic Resources (IBPGR) and the International Maize and Wheat Improvement Center (CYMMIT), for the exchange of plant genetic resources for research. The formal seed system is organized by the state agency, DoA, which monitors the entire process of seed production from breeding to multiplication, processing, storage and distribution to ensure high-quality seeds. The development of the seed flow system started in 1978 with a series of seed projects. Certified seeds were processed in seed-processing plants to remove inert materials, specify standard grading and separate full grain as seeds. Seed development activities are currently carried out by the DoA according to seed flow. DAR produces the nucleus seed and breeder’s seed and the Seed Division of DoA multiplies this to produce foundation seed and registered seed at 32 seed farms. Then, the Seed Division produces the certified seed through the Agricultural Extension Division (AED) in cooperation with farmers. The Seed Division conducts R&D activities on agro-techniques, effect of chemical fertilizers and biofertilizers, disease resistance and varietal trials to determine location specific results. It is also responsible for multiplying promising quality seeds and AED distributes the registered seed to farmers to multiply to produce certified seed. International funding agencies and technical institutions have provided assistance through grant and loan projects for seed development in Myanmar (Table 3.1).

Table 3.1 Seed development projects implemented in Myanmar Sr. no. Project name Year

implemented Organization Type of assistance Crops

1. Seed development project phase I

1978-1984 World Bank Loan Rice, cotton

2. Maize and oilseed production project

1982-1986 USAID Grant Corn, wheat

3. Quality seed production project

1984-1986 FAO/DANIDA Grant Corn, wheat, pulses, oil crops

4. Seed development project phase II

1986-1994 World Bank Loan Paddy, pulses cotton, groundnut

Source: DoA

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As outcomes of the seed development projects, quality control seed-testing laboratories were established and improvement in quality of seeds emphasized. Seventeen seed-processing plants were constructed with the assistance of seed development projects in different locations where major crops are grown (Appendix 3). Among the seed-processing plants, a few plants are operating. They are located in Chaungmagyi farm, Mandalay farm, Patheingyi township and Kadoke farm. In order to support seed grading and quality control, the Seed Division arranged to procure 12 mobile seed-processing plants and the number will be expanded based on the allotted budget.

3.2 Policies, laws and regulations for seed development In order to prevent infestations and infection of pest and diseases from imported seeds and seedlings, the Plant Pest Quarantine Law and Regulation was enacted in 1993. The Seed Law was enacted in 2011. The Seed Law stipulates the rules for research, breeding and selection, varietal development and release of new varieties, seed production and business, registration and approval of new crop varieties, and quality control. The component on seed business elaborated in Chapter VIII of the Seed Law has provisions to carry out seed-related business systematically and to develop the seed industry in the country. However, technical and institutional support to encourage the private sector are not included. Procedures and regulations for seed businesses reflecting the Seed Law (2011) were only ratified in February 2016. Under a new Farm Land Law, farmers who have land-use rights can rent their farmland to the private sector to engage in seed business or crop production. A Plant Varietal Protection Law has been drafted and is in the process of approval in order to protect the breeder’s rights and to encourage researchers in plant breeding to release quality seeds of new varieties, both produced in the country and imported. A Biosafety Law has also been drafted and is in the process of approval. With the technical assistance of FAO, a National Seed Policy was drafted in 2014 but is still awaiting approval (Table 3.2). The main objective of the National Seed Policy is to support the establishment of a sustainable seed industry through systematic and strategic approaches that would continuously create and supply new improved varieties, support successful seed production, certification and marketing systems in order to form the basis for the overall development of the agriculture sector.

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Table 3.2 Legislation related to development of seed industry

No. Title of law or regulation Scope of law or regulation Responsible

agency Status

1. Plant Pest Quarantine Law

To quarantine to prevent pests entering into Myanmar

DoA, MoAI Enacted in 1993

2. Seed Law To produce crops with quality seed and to carry out seed-related business systematically

DoA, MoAI Enacted in 2011

3. Farm Land Law Liberalization of land-use rights to mortgage, sell, rent, transfer and inherit

SLRD, MoAI Enacted in 2012

4. Law on Biosafety To manage safety of seeds and plant parts MoAI Drafted 5. Plant Varietal

Protection Law To protect breeder’s rights DAR, MoAI Drafted

6. National Seed Policy

For development of the seed industry DoA Drafted

Source: DoA The Seed Law was enacted on 7 January 2011 by the State Peace and Development Council. It came into force on 7 January 2013. The objectives of the Seed Law are: (i) To assist the development of agricultural sector of the State by cultivating and

producing crops using pure seed; (ii) To enable the seed-related business to be conducted commercially and to carry out

such business systematically; (iii) To encourage participation by government department, organization and individuals in

seed production and seed research; and (iv) To enable government departments, international organizations, internal and external

organizations, and individuals to cooperate in the development of seed-related business.

According to Chapter IV of the Seed Law, a National Seed Committee (NSC) has to be formed under the chairmanship of the Deputy Minister of MoAI, comprising representatives from the relevant government departments and organizations, experts and other suitable persons as members. The Director General of the DoA acts as the secretary (Appendix 2). This institution is to function as the apex body for seed quality assurance as well as the supply of quality seeds and planting materials to farmers throughout the country. To achieve the objective of seed sector development, the Seed Development Committee is an independent body giving each state and region authority over their own certification with seed-testing facilities and skilled staff. In accordance with the guidance mentioned in Chapter VI of the Seed Law, any person who wants to establish a seed-testing laboratory should apply to the NSC to obtain a registration certificate in accordance with the stipulation that they will engage in seed-related business. Penalties for breaching the rules and regulations are also elaborated in the Seed Law. Technical training on seed technology and testing procedures is needed for the staff from the private sector and existing government institutions need to conduct training and workshops to improve technical skills of non-government staff who are engaged in private seed-related business.

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Procedures and regulations to implement the Seed Law (2011) were drafted, but only ratified on 23 February 2016. The ratification of such regulations should normally be conducted within 2 years of the enactment of a law. As such, the registration and certification processes for seeds have only recently been established.

3.3 Value chain map of seed sector Breeder seeds are maintained in Central Research Farms and foundation seeds of crop varieties released by the NSC are produced in the satellite research farms of DAR. At a technical meeting of DAR, Seed Division and AED, it was decided that DAR should dispatch foundation seeds to seed farms under the Seed Division where registered seeds are produced and foundation seeds are maintained to give true-to-type and pure seed. The registered seeds produced in the seed farms of the Seed Division are distributed to contact farmers through township extension and education staff of AED to produce certified seed. These contact farmers are then contracted with AED to grow certified seed and pay back twice the volume of borrowed seed in kind after harvest. These contact farmers can also exchange the remaining seed stock with other farmers who are willing to grow the improved seed or can sell it as grain to wholesale centres. The wholesale centres usually keep aside the quality grain, ascertained with a visual check, from a farmer’s sales volume and sell it to farmers who want seed at sowing time. Township DoA offices also distribute certified seed collected from the contract farmers in the farmer-based seed bank to other contact farmers for seed multiplication. The flow of seed value can be observed in the seed value chain map shown in Figure 3.1.

Figure 3.1 Value chain map of seed development (pulses and oil crops) in the Dry Zone

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4.1 Seed production, multiplication and distribution system In the seed sector, there is a formal seed production system and an informal seed production system that can also be characterized as a farm-saved seed production system. In the formal seed production system, the government is responsible for the whole chain of processes, such as seed breeding, selection, production, multiplication and distribution. Under the guidance of the DoA, seed multiplication activities are jointly carried out by the Seed Division and the AED. The Seed Division is mainly responsible for the production of foundation seed and registered seed classes of improved varieties of various crops on its seed farms. The AED is responsible for undertaking seed multiplication and distribution work, in coordination with the Seed Division. The AED is responsible for organizing Seed Model Villages as well as contact farmers for the production of certified seeds. The system of seed multiplication by the government is shown in Figure 4.1. This type of system functioned well before 2003 when DoA took full responsibility for seed value chain process such as technology support, multiplication, quality control, procurement, storage and distribution, while farmers produced certified seed in cooperation with extension agents from DoA.

4 Impact of Policies on the Seed Value Chain

Figure 4.1 Public seed multiplication and distribution system

Source: DoA

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Due to changes in administrative arrangements within the DoA, the budget allotted for seed procurement from farmers by the department was abolished after 2003. It was felt that DoA should only be providing services for educational activities and not be involved in economic functions such as the procurement and selling of seeds. In the informal seed production system, farmers buy seed either from other farmers within or outside their villages, nearby seed farms or wholesale grain centres, in order to supplement their seed supply for growing crops. Generally, farmers do not have the technical knowledge and capacity to produce certified seed. A few farmers traditionally select the seeds from their crop before harvest for replanting in their own fields, while the rest is harvested and stored for sale as grain. If there is a need for seeds by other farmers during planting season or seeds are required for replanting in the case of natural disasters, grains that have been stored for household consumption are usually sold as seeds. In general, most farmers do not expect to buy seed at a significantly higher price than grain. In cases of shortage, their own seeds or grains are normally exchanged within the community. This type of seed production system is referred to as a farm-saved seed production system. Few farmers have access to the required quantity and quality of seeds, and still use grains selected in the traditional way. This practice results in a progressive degradation of seed quality and has a significant impact on quality, productivity and build-up of seed-borne diseases. The lack of technical knowledge and poor investment by the small farmers also pose important challenges in developing seed industry. However, the farm-saved seed production system is important for preserving biodiversity of local varieties and for seed security in rural areas, particularly in remote areas where formal seed supply is not accessible. Overall, the current low use of improved certified seed is a reflection of both demand and supply factors. Supply side issues include: (i) underfunded research, (ii) low capacity of extension services, (iii) lack of investment in seed production, processing and storage for pulses and oil crops, (iv) relatively low capacity of growers, technicians and researchers, and (v) lack of incentives for growers and companies (private sector, PPP) to engage in seed production. On the demand side the important issues are: (i) lack of awareness and knowledge, (ii) cost and risk, (iii) limited market availability for quality products, (iv) inadequate quality assurance, and (e) gaps in demonstrating clear benefits from use of improved seed to a sceptical farming community (FAO Investment Centre, 2014).

4.2 Quality assurance of the seeds and infrastructure development

Improved seed is one of the major inputs needed to increase production and improve grain quality for export. Even though the sown area of major pulses has increased since 1988, quality seed provided to farmers is far behind their actual needs. Among the major grain legumes, quality seed of improved/released varieties is mainly produced for black gram, green gram and chickpea, with minimal production for others. The distribution of quality seed of each variety from state farms is unstable due to budget limitations (see Table 4.1). It is difficult to estimate the area coverage of improved varieties, since there is no systematic seed flow and a lack of a seed multiplication programme.

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Table 4.1 Quality seed of pulses and oil crops distributed by MoAI

No. Particulars Unit 1995/96 2000/01 2005/06 2009/10 2010/11 2011/12 2012/13

Pulses and beans mt 256 573 6 70 97 196 306

1. Green gram “ 86 107 3 7 9 23 37

2. Black gram “ 27 382 - 42 39 105 20

3. Butter bean “ - - - 1 1 3 -

4. Cowpea “ 3 15 - - 1 1 3

5. Soybean “ 3 - - - 3 1 24

6. Chickpea “ 97 48 - 2 19 10 -

7. Pelun “ 18 - - - 2 - -

8. Lentil “ - - - - = 11 -

9. Pigeon pea “ 22 20 3 18 22 35 220

10. Lablab bean “ = = = = = - 5

Oil crops - 352 316 88 32 29 54 110 11. Groundnut “ 33 2 26 1 1 - 12

12. Sesame “ 125 16 4 22 12 23 50

13. Sunflower “ 194 298 58 9 16 31 48

Source: MoAI (2013) Seed quality plays a crucial role in the maintenance of plant vigour and achieving the required plant population per unit area. Seed quality has many components but the most important are germination, physical purity, moisture content and genetic purity. Each requires specific techniques for assessment. To support the quality control functions, there is a need to upgrade seed-testing facilities both in the public and private sectors in Myanmar. Currently, only the public sector has seed-testing laboratories at its seed farms and in some of the regional state/division agricultural offices. However, the facilities, laboratory equipment and capacity of staff are still poor. The government needs to seek funds to upgrade such facilities and staff training. Small and reliable seed laboratories using simple equipment should be established at regional level, in consultation with regional authorities to enable local seed growers to improve the quality assurance of their seeds at minimum cost. The cleaning process for the quality seeds is also important. Without a processing facility, the minimum standards in the regulations have no meaning and the seeds produced will not meet quality standards. Some seed-processing plants are owned by the private sector for cleaning and grading before export. In the public sector, there are seed-processing plants which were established with an assistance of seed development projects in the 1980s. However, these do not function well due to weaknesses in maintenance and lack of funds for repair. The public sector should consider investing in renovation of the existing seed-processing facilities or establishing new ones in their respective seed production areas.

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4.3 Perspectives from demand and supply sides for low use of certified seeds

A special high-yields programme was launched in major pulse-growing townships in the 1970s. To improve production technology awareness among farmers, on-farm demonstrations were carried out under different agroclimatic conditions. At that time, farmers and extension personnel were given training to disseminate the improved varieties and appropriate technology. Seed multiplication programmes were initiated on farmers' fields for different legumes in different regions. During the socialist regime, government agencies supplied inputs, supported technology, seed multiplication and distribution to cover some parts of the value chain of pulses. The seed-testing and distribution system was organized and administered by the state agency (DoA). Before 2001, the budget funds for seeds and implements was normally allotted to the Procurement Division of Myanmar Agricultural Service (now DoA) to buy certified seeds produced by contract farmers. A seed regeneration programme allowed for the exchange of old seeds with new certified seeds once every 3 years, wherein farmers who wanted to exchange seeds could do so through extension staff. The seeds and implements fund supported non-profit bearing businesses for distribution of seeds and farm implements. On the demand side, with the support of a certified seed programme by government agencies, the seed price was also affordable for farmers who were satisfied with seed quality, which was ensured with field checking and seed testing by the DoA. After 2000-2001, DoA had limited funds to support the seeds and implements budget, which constrained the functioning of state seed farms in the production and distribution of seed. Therefore, procurement of seed by the state agency was dissolved and the private sector took over the major role of production, marketing and trade of agricultural commodities. With the emergence of rice specialized companies (RSCs), quality seeds were produced through contract farming arrangements between farmers and RSCs. Under contract farming arrangements, seed farms under the DoA provided registered seeds to RSCs for multiplication and the production of certified seeds. These were then distributed to other farmers in contract farming areas to produce quality grain. Therefore, RSCs could distribute a certain amount of seeds to the farmers. However, there were no specialized companies which could make contract farming arrangements for the production of pulses and oil crops with the farmers in the Dry Zone. The farmers in the Dry Zone rely on the distribution of quality seeds by the DoA and local seed farms. With the lack of an effective seed flow programme, informal seed distribution is common with the exchange of seeds among farmers through the farmers’ seed bank system in some areas of the Dry Zone. To improve uptake in use of certified seeds, adequate knowledge of using certified seed is necessary, for which awareness and support programmes should be expanded in the Dry Zone area. It is also important that seed should be affordable for the growers. Moreover, although there is significant demand for good quality certified seeds in the country, this demand is latent due to issues with accessibility of good quality certified seeds. Quality assurance with regard to purity, heritability, germination and productivity, as well as the physical accessibility of certified seeds are necessary to improve the quality of produce. The effectiveness of good quality seeds hence needs to be demonstrated to farmers in order for them to develop trust in a seed brand, which can in turn enhance the demand.

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On the supply side, there are key weaknesses that can be addressed through provision of sufficient funds to support research and extension activities, infrastructure improvement in seed processing, storage and seed-testing laboratories, upgrading technical skills of researchers and technicians, and supporting incentives to seed growers and seed-producing private companies such as tax holidays, permission to use the existing seed farms for seed production, permitting plant variety protection (PVP) rights, importation of seed for trial and multiplication, etc. A visual illustration of both demand and supply side perspectives on the low use of certified seed is shown in Figure 4.2.

Figure 4.2 Perspective from demand and supply sides on the low use of certified seed

Source: Aung and Goletti (2015)

4.4 Seed marketing Myanmar mainly imports seeds from other countries, mostly hybrid vegetable seeds from Thailand and China, and hybrid maize from the Charoen Pokphand (CP) Group in Thailand. As per information from the Vegetable and Fruit Research Development Centre of DoA, seed export is minimal, with the export of some hybrid vegetable seeds such as bitter gourd, tomato, chilli and melon, which are produced in Myanmar and exported to other countries by None U Seed Co. and East-West Co. The use of hybrid maize has substantially increased since the DoA and CP in Yangon started producing and distributing hybrid seeds locally, covering 70-80 per cent of the total demand. CP is taking responsibility for the entire value chain from inputs to the end-product market. CP marketing agents located in major maize-growing areas distribute hybrid seeds to farmers who want to grow hybrid varieties and also collect the product after harvest paying current market prices. In the Dry Zone area, most farmers use their own seeds of pulses and oil crops. Most of their seeds are modern varieties that were released by DoA many years ago. Most farmers cannot store certified seeds, which are multiplied in their fields through contracting

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arrangements and they sell almost all of the seed as grain right after harvest. There are a number of wholesale centres collecting pulses and oil crops in the townships in the Dry Zone. Most owners of these wholesale centres are members of The Myanmar Pulses, Beans and Sesame Seeds Merchants Association, which is a private association under the UMFCCI. Uncertified seeds are available at these wholesale centres or grain-collecting centres in the Dry Zone at sowing time. The price difference between grain and uncertified seed is affordable for farmers in green gram and pigeon pea, for example, 3,000 to 4,000 Ks per basket (32.7 kg), while the difference is quite large for chickpea, e.g. 10,000 Ks per basket (31.3 kg). Likewise, the price difference of seed and grain in sesame and groundnut is also quite large, e.g. 14,000 Ks to 15,000 Ks per basket (11.4 kg in groundnut and 24.5 kg in sesame) during growing season.2 However, there is no quality guarantee or seed specification and standard for farmers. In addition, there is no settlement mechanism for disputes between buyers and sellers, even under the Seed Law. The state institution, DoA, distributes registered seed to contract farmers and collects twice the volume of seeds from them after harvest in order to redistribute the seed to more contract farmers under the farmers’ seed programme. However, seeds are directly sold to farmers who approach the government seed farm. There are many difficulties in seed import and export, mainly due to lack of Sanitary and Phytosanitary (SPS) measures and quarantine agreements. Implementation of rules and regulations of seed import is not functioning well since a 2-year grace period for enforcing the Seed Law from the date it was enacted exists. Many companies are also not yet fully aware of the rules and regulations stipulated in the Seed Law.

4.5 Establishment of village seed banks Distribution of certified seeds for peas and beans is inadequate because most of the state seed farms are concentrating more on new rice varieties than on peas and beans. Another reason for significant drop of pulses and sunflower seed distributed by MoAI after 2000-2001 is the limited budget for funding seed production and implementing procurement for certified seeds produced by farmers. Under these conditions, the establishment of village seed banks is an alternative being considered by the AED to meet the demand for improved seed in pulses (peas and beans) and groundnut. Seed banks are managed by two means: (i) village-based seed banks and (ii) farmer-based seed banks. Village-based seed bank (VSB) The establishment of village seed banks was implemented in each village in Sagaing, Magway and Mandalay in 2007-2008. Certified seeds of pigeon pea, chickpea and groundnut were distributed to the contact farmers with group responsibility for collection, storage and distribution. In this system, village-based seed bank committees were formed in the major pulse-growing villages. The committee is responsible for growing certified varieties, controlling pests and diseases, cleaning, storing and selling seeds in time for the growing period. The main constraint in establishing the village-based seed bank system is the requirement of funds for purchasing, cleaning and storage processes. Therefore, most of the certified seeds produced in contact villages could not be multiplied sufficiently to meet the objective of village seed bank.

2 Observation from field visit in dry zone, October 2015.

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Farmer-based seed bank In order to expedite the process of production and distribution of certified seeds and ensure a smooth implementation of a seed bank system, farmer-based seed banks were initiated in three townships each in Sagaing and Magway and two townships in Mandalay in 2010-11. Certified seeds of groundnut, pigeon pea and chickpea were distributed by AED to the farmers. In successive years, farmers’ seed banks were expanded in other townships in other regions, such as Bago and Yangon. In addition to groundnuts, pigeon peas and chickpeas, certified seeds of green gram and mung beans were also included in the farmers’ seed bank. In 2013-2014, the farmers’ seed banks for five varieties of crops increased to 69 townships in 11 states and regions, covering 509 ha of pulses and groundnuts (DoA, 2014). This system is functioning to multiply the certified seeds to some extent, but there is need to manage the seed flow systematically with collection of data concerning the exchange of seeds from farmer to farmer. The activities for establishing farmer-based seed banks are as follow: DoA township office selects farmers and trains them in the seed multiplication system

by means of on-farm trials. Locally adapted and certified seeds are distributed to farmers (contact farmers) and

then growing, cleaning, storing and distribution is conducted by the farmers themselves.

At harvest time, DoA collects a certain amount of distributed seeds produced by contact farmers for redistribution to other farmers.

Farmers from the next village will be selected to distribute the certified seed 2 years after the first village seed production programme.

Newly purified seeds are replaced after 3 years to avoid seed degeneration. DoA nominates the seed grower farmers as certified seed producers.

4.6 Research and extension linkages Breeding and variety improvement research is carried out by the DAR, in collaboration with international research organizations. Variety trials and adaptability tests are also conducted in different agroecological conditions before the release of new improved varieties. Breeder seeds of promising locally adapted varieties are maintained in regional satellite research farms, which produce foundation seeds to be distributed to seed farms under the Seed Division of DoA. The seed farms under the Seed Division produce registered seeds, which are distributed to the township AED. At the central level, DAR, Seed Division and AED meet annually and before the release of new varieties. At the local level, field days for farmers and discussions on the result of adaptive research are occasionally conducted between seed farms and extension staff. Some farmers directly approach the seed farms to buy registered seed of promising varieties in their respective region. The seed farms have records on distribution of registered seed to farmers, but there is no record on the multiplication of seeds in the villages or interactions with the township offices of the AED. Likewise, the Township Agricultural Office has records of certified seeds distributed to the contract farmers under the farmers-based seed banks, but there are no records on multiplication and redistribution taking place from farmer to farmer. Without a systematic recording system on seed multiplication, it is difficult to trace

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the genetic purity and regeneration of the distributed seed in the hands of farmers. According to the research findings, cross-pollinated varieties, such as pigeon pea, sunflower and maize, should be sown at 183 m apart, otherwise they can cross pollinate with each other and lead to their degradation. However, it is observed that this type of cultivation practice is not followed by farmers in field operations due to weaknesses in field demonstration and education by the extension staff. On-farm checking and seed testing are also weak in the fields located in farmer-based seed banks due to budget limitations and insufficient skilled staff in the Seed Division.

26

Emphasizing production and utilization of high-yielding and good quality seeds is one of the agricultural sector policies under the integrated development strategy developed in 1992-1993. Utilization of good quality seeds to produce quality product is included in the key factors for development of agricultural production. There are three main functions of the MoAI: (i) seed production, (ii) training and education, and (iii) research and development. With these three main functions, there are targeted yields for major crops including black gram, green gram, pigeon pea, groundnut, sesame and sunflower. Application of improved varieties that are suitable for respective states and regions is to be undertaken to increase productivity and to improve quality of the major crops. To streamline the above policy objectives and main functions for crop productivity and quality improvement, regular meetings and discussions between DAR and DoA take place at least twice per year sharing a list of locally adapted new seed varieties, results of variety trials and testing, and problems encountered in climate-friendly agriculture in the field, among others. In the meetings and discussions, attention is mainly given to technical matters and administrative factors for improving seed varieties. At the regional and township level, there is close cooperation between research seed farms and extension staff on collection and distribution of seed managed by the DAR and DoA. However, less attention is given to the problems encountered in seed production, multiplication and seed flow in the farmers’ fields and private-sector participation in seed marketing. From the seed supply side, public research institutions and seed farms could provide enough nucleus stock of seed for breeders, registered seeds and the seed growers, i.e. farmers/private sector. The farmers also could afford to produce certified seeds in their fields, but there is not enough capacity in terms of financial support and provision of skilled staff for seed inspection. In addition, the collection and storage of all certified seed at harvest time for the next sowing season are rarely undertaken by any stakeholder, either government institutions or private entrepreneurs. There are weaknesses in consultation with all stakeholders engaged in these business entities in identifying the root causes of this problem and considering possible solutions.

5 Effect of Processes and Institutions

on the Impact of Policies on the Seed Value Chain

27

The NSC was established in 2004 and is the body responsible for seed quality assurance and the supply of seeds and planting materials to farmers throughout the country. It is chaired by the Deputy of the MoAI and is comprised of representatives from relevant government departments, experts and relevant organizations. The Director General of the DoA acts as secretary. Any person wishing to establish a seed-testing laboratory must apply to the NSC to obtain a registration certificate. The roles and responsibilities for seed research, production and distribution have undergone changes in the last decade. Until 2000, DoA was responsible for multiplication, procurement, storage and distribution of seed. The AED multiplied certified seed through contract farming arrangements, provided support for rouging to manage seed purity and oversaw other quality control processes. The Procurement Division of DoA purchased the certified seeds produced by contract farmers and stored the seeds prior to distribution. In 2000, the DAR under the MoAI took over responsibilities for testing new varieties in research stations in order to confirm potential yield, quality, genetic stability, local adaptability, and pest and disease resistance. The DAR is also responsible for the production of breeder and foundation seeds and the Seed Division of the DoA uses these pure seed lines to produce both foundation and registered seeds. The Seed Division of DoA is also responsible for seed certification, but there are still no specific procedures established under the Seed Law to govern its implementation. The Seed Division also lacks staff and facilities to undertake field inspection and laboratory testing. DAR has 24 satellite research stations throughout the country. DAR has also maintained 12,000 samples of local landraces and wild rice relatives in a long-term genetic seed bank.3 This collection is actively used in local breeding programmes and exchange programmes with other bilateral and international research institutes. In the Dry Zone, informal seed production (farmer-based seed bank) functions well in the villages, extending across 38 townships for five crops, green gram, mung bean, pigeon pea, chickpea and groundnut, in 2014. DoA contracts with the farmers, providing improved seeds to produce certified seeds. A small amount of seed produced by farmers is collected by the DoA and most of the remaining seed is sold as grain to the wholesale centres, which keep the pure grain and sell it as seed for the next growing season. The wholesale centres’ main business is not seed distribution but collection of grain for export. Therefore, it is difficult to identify this type of seed business as commercial distribution, as defined in the Seed Law,

3 Information from DAR.

Figure 5.1 Certified seed sample bag from seed farm

28

and to enforce registration of seed businesses. Seed testing and seed certification procedures are being applied only to seed production by the seed farms. It is necessary to extend education and training to the private sector.

29

This section seeks to identify the key emerging challenges and issues facing the development of seed value chain in the Dry Zone, through a SWOT analysis (Box 1). It also examines the extent to which current policies, institutions and processes for the development of seed sector are likely to address the challenges. As noted earlier, given the multitude of public sector initiatives and different support programmes for Dry Zone development under way, there is a lack of clarity in the government’s seed sector development strategy. It is expected that this SWOT analysis can contribute to providing a clearer statement of both strategy and policies on the value chain for seed development. Based on the SWOT analysis, key emerging issues that will need to be addressed by future seed policy are highlighted.

Box 1 SWOT analysis of seed value chain in the Dry Zone of Myanmar

Strengths Weaknesses

Policies Strong political will on agricultural

development to improve rural livelihoods Varietal improvement designated as a priority

in the agriculture sector development policy Seed Law – already in place Procedures and regulations to implement the

Seed Law (2011) were ratified in February 2016

Draft Plant Variety Protection Law has been submitted to Parliament for approval

Policies Lack of national seed policy Lack of diversification: main focus on rice,

maize and vegetables Lack of incentives to private sector to invest in

seed industry

Institutions Network of research and seed production(24

research stations and 32 seed farms) National Seed Committee had been formed

and functioning in accordance with the Seed Law

Institutions Insufficient budget for R&D Limited technical skills and capacity of

research and extension staff Weakness in coordination among institutions

(central as well as regional)

6 Strengths, Weaknesses, Opportunities

and Threats in Development of Seed Value Chain

31

Strengths Weaknesses

Plant genetic resources are stored in seed banks

Certified seed production and distribution initiated in the field in the form of farmers’ seed banks in Dry Zone areas

Lack of budget allotment for seed procurement in AED

Lack of seed grower associations at central and regional levels

Processes Supply chain in place involving public, private

and farmer stakeholders Private sector involved in distribution and

marketing of the seed The contract farming system functions well in

seed production for rice crops in the delta region

Processes Insufficient infrastructure development in

public sector for seed production Poor facilities in seed quality control and seed

testing laboratories in both central and regional level

Lack of mechanisms to address weaknesses in farmers’ and private sector’s awareness of Seed Law and regulations

Poor availability of market information on seeds

Weakness in training and education on seed production techniques to farmers

Opportunities Threats

Policies There are encouraging opportunities for PPP

and significant scope for improvement Foreign investment in seed industry is being

initiated

Policies Cultivated land area is declining due to

industrialization Illegal and informal border trade with

neighbouring countries

Institutions There is a lot of potential for cooperation with

international research institutions

Institutions Lack of seed authority in states and regions

may delay registration, production and marketing at farm level

Processes Private companies are investing in paddy,

maize and vegetable seed production through contract farming with farmers in some areas

Increasing farmer participation in processes to improve crop productivity and quality

Increase of private investment in seed production

Increasing demand for certified seeds

Processes Weakness in quarantine procedure in

importing seed and plant parts across border Lack of services sector in prevention and

control of pests and diseases Negative impact on crop production due to

climate change could cause disruption

32

Myanmar is undergoing a shift from a controlled economy to one which is market oriented. The seed sector has undergone some reforms, but many of these have not gone far enough to create an environment that is conducive to private-sector involvement and investment. Myanmar possesses many advantages with respect to seed sector development and also very considerable potential for overall agricultural development. The past weak performance of agriculture, which in turn reflects, among others, a lack of investment, poor support services, and inappropriate incentives and policies, also means that there are real opportunities to realize this potential. At the same time, the SWOT analysis reveals the serious weaknesses and threats that the seed sector faces as a result of the neglect of the seed industry and the stagnation of the seed flow in recent decades. While Myanmar is now on a new development path that is likely to produce much more rapid and sustained growth, it will take some years to fully make up for the past neglect. In addition, the approval of regulations to implement the Seed Law (2011) has been slow; they were only ratified in February 2016. Many companies are still unaware of the rules and regulations. However, as the country continues on its path of greater liberalization there are important roles for the public sector to improve agriculture and to support a private-sector-led seed system. Policies: Agricultural development is given priority to reduce poverty and improve rural livelihoods in the National Comprehensive Development Program. This political will highlights the strength for development of the seed value chain. Varietal development designated in the agriculture sector development policy will enhance the activities to develop the seed sector. The enacted Seed Law as well as the PVP Law and the procedures of the Seed Law that are in the process of being approved are the main policy instruments to support seed value chain development. There are some opportunities to improve the seed value chain, through encouraging PPPs in contract farming and some foreign direct investments in seed production. However, the lack of a national seed policy, lack of incentives for the private sector to invest in seed production and less interest from the public sector on seed sector development in pulses and oil crops are weaknesses identified by the analysis. It is necessary to develop seed production and value chains by taking the existing opportunities and strengths, and by overcoming threats of illegal border trade of seed with the neighbouring countries, such as China and Thailand.

7 Summary of Findings

33

Institutions: The NSC was formed to operationalize development activities for the seed value chain. There is also opportunity for seed research centres to utilize genetic resources from seed banks for varietal development research. Formation of farmers’ seed banks in the Dry Zone has been an important step to improving certified seed production and also supporting seed value chain development. The network of seed research stations and seed production farms has strengthened cooperation among the institutions for seed sector development. There is opportunity to coordinate with international research institutions to develop new improved seed varieties. However, insufficient budget for seed research and development, weaknesses in technical skills and capacities in seed research and education, and a lack of seed grower associations are major weaknesses. The lack of a seed authority at the regional level may also delay policy processes. Policy processes: Contract farming systems and private-sector involvement in the seed value chain represent strengths for further improvement of seed value chain processes. Increasing farmers’ awareness of crop productivity and quality, increasing demand for quality seeds and increasing private investment in seed production are opportunities for the implementation of the seed policy. Currently, most activities related to seed production and distribution are handled by DAR and DoA, with a limited amount of private-sector involvement. However, the official seed system struggles to produce seeds of sufficient quality and quantity, and many in rural areas are underserved. The extension service responsible for seed distribution lacks capacity and is simply not sufficient to reach all farmers.

34

On policies 1. Formulate and adopt a national seed policy with the support of national and

international experts to assist the implementation of the Seed Law enacted in 2011. The national seed policy should facilitate the development of an efficient and competitive seed value chain that meets the needs of all stakeholders. Representatives from farmer organizations and seed grower associations should be included as members of the NSC.

2. Encourage farmer-based seed banks in the Dry Zone to produce certified seed by providing a government support fund to facilitate seed testing, processing and storage of the first-generation certified seeds collected from contract farmers and to promote the seed industry through private-sector development through joint venturing with the public seed farms.

3. Design and implement a new seed sector development programme, advocating state and regional administrative authorities to support private-sector investment.

4. Establish pulses and oil seed standards and SPS measures, with the assistance of international research institutes, to comply with the requirements of developed markets, such as the EU.

5. Expedite the finalization of the PVP Law to encourage private-sector investment in seed research and production. This PVP Law is still being drafted and should comply with the International Convention for the Protection of New Varieties of Plants which has established the International Union for the Protection of New Varieties of Plants (UPOV).

6. Improve the new foreign direct investment law to increase private-sector investment. This should include practical ways, such as improving access to land, removing bottlenecks on ownership of foreign investment and ensuring plant breeder rights.

7. Provide training and workshops to strengthen capacities of extension agents and farmers for seed testing, maintenance and quality control that comply with international standards and protocols, in collaboration with international seed technology institutions.

8 Recommendations

35

On institutions 1. Facilitate coordination mechanisms at different levels:

(a) Among MoAI departments (Seed Division of DoA cooperating with DAR and AED) to formulate a seed flow programme with regular supply of first-generation certified seeds to participating farmers in pilot areas. For this programme, funds should be provided by DoA for buy-back of surplus certified seeds produced by the contract farmers for distribution to other farmers on premium price basis. However, this support must be limited to the “surplus” certified seeds produced by contract farmers. The premium price paid is to encourage seed enterprise development. This programme will stimulate the private-sector investment with growing demand for certified seed by the farmers.

(b) Among the Union, ministry, state and region ministries/agencies to ensure a successful dissemination and adoption of new improved varieties. The Union MoAI should lead participatory policy formulation and programme setting in line with the rules and regulations, while the state and region ministries have the authority to implement the programmes and oversee governance of activities.

(c) Between the private and the public sector to ensure effective partnerships to improve quality of seed and mobilize investment. Joint venture arrangements between the public and private sectors should be set up, with DAR taking responsibility for producing breeder and foundation seeds and the Seed Division jointly venturing with the private sector to produce registered seed in seed farms/private farms. Certified seed production and multiplication arrangements should be made between the private sector and farmers. The Seed Division should provide seed testing and registration services for private-sector investors until such time as facilities for seed-testing laboratories are established by the private-sector itself.

(d) Between international and national research centres to improve pure varieties. Research collaboration between DAR and ICRISAT should be strengthened in producing modern varieties of arid and semi-tropic crops, such as peas and beans, sesame and groundnut that are resilient to the effects of climate change.

(e) Between extension and research agencies to improve outreach to farmers. As noted above, almost all seed production and distribution is presently handled by DAR and DoA with a limited amount of private-sector involvement and the quality and quantity of seeds are insufficient. The extension service lacks capacity and staff, and thus regular meetings and discussions between extension and research agencies at the regional level can help to identify problems raised by extension agents in the field and find solutions.

2. Establish a “Myanmar Seed Industry Association” to support the development of seed grower associations which are formed at both township and village levels and encourage seed growers to engage in contract farming.

3. Promote the emergence of private seed companies through technical support for seed laboratory testing, certification and registration by DoA and provide access to land in seed farms under DoA to private investors for seed production through joint ventures with the Seed Division.

4. Establish a seed quality assurance system and a monitoring and inspection system to improve the seed quality. Technical skills and modern techniques need to be

36

strengthened to upgrade the capacities of staff in the Seed Division. Support from international organizations, such as APCTT-ESCAP, is needed to provide training.

5. Establish a system for PVP in accordance with obligations under Trade-Related Aspects of Intellectual Property Rights (TRIPS). The protection of new varieties of plants as a form of intellectual property is an important stimulus to private investment in plant breeding and introduction of foreign-protected varieties to the market. Myanmar became a Party to the Convention of Biodiversity in 1994 and became a member of World Trade Organization (WTO). Expertise and training from international organizations to establish and implement an effective PVP system is required. However, Myanmar is still not a member of UPOV. APCTT-ESCAP should consider filling this gap by conducting workshops and training for the DAR and staff who are drafting the PVP Law.

6. Promote transparent and simplified administrative procedures for a quality seed certification system.

7. Establish a system to produce reliable statistics and marketing information related to seed supply, distribution and seed demand by farmers.

8. Establish a seed certification body in each state and region.

On policy processes 1. Ensure the availability of adequate resources for an extension system promoting

awareness on the Seed Law and certified seed production to farmers at the township and village levels.

2. Introduce policy reforms promoting a shift from the current top-down structure to bottom-up approach that is able to incorporate grass-roots and private-sector views.

3. Encourage the private sector to establish seed-testing laboratories, providing tax holidays and relaxing duties on importation of the lab apparatus. Seed testing and quality control is an important step to ensure that seed standards are in line with requirements mentioned in the Seed Law.

4. Strengthen existing seed-processing facilities and establish mobile seed-processing plants in states and regions and provide services to seed growers.

5. Conduct workshops involving private sector regularly to evaluate the implications of the Seed Law and procedures.

6. Conduct workshops regularly through community participatory approaches to evaluate the implications of the Seed Law and procedures.

7. Develop a systematic recording system to monitor seed distribution among farmers to streamline the regular seed flow system.

8. Arrange regular meetings between research seed farms and agriculture education agencies including relevant stakeholders at the regional level to adjust policy processes with changing conditions of seed market, particularly for crop types, seed varieties, local and export demand and local adaptability.

37

High-quality seeds provide a mechanism for farmers to quickly adopt new varieties demanded by the market and to ensure better quality and a higher yield of crops. The shortage of good quality seed is frequently identified as a major constraint to increasing crop production in Myanmar. Seeds are also a key component in more intensive systems of crop production aimed at increasing overall productivity of agricultural land. The protection of new plant varieties as a form of intellectual property is an important stimulus to private investment in plant breeding and the introduction of foreign-protected varieties to the market. The PVP Law has been drafted in accordance with obligations under the TRIPS and is in the process of obtaining national approval. An effective seed supply system is required to provide good quality seed to farmers at the right time and at an appropriate cost. Harmonized public and private supporting mechanisms are required for an integrated and cost-effective seed distribution system which is capable of generating and delivering improved seed varieties to farmers. Such a system would be an important step towards ensuring seed security and successful seed industry development. Myanmar is undergoing a shift from a controlled economy to one which is market oriented. The seed sector has undergone some reforms, but many of these have not gone far enough to create an environment that is conducive to private-sector involvement and investment. In addition, the approval of regulations to implement the Seed Law (2011) has been slow and the regulations were only recently ratified in February 2016. Many companies still remain unaware of the rules and regulations, since they were not consulted in the drafting and also because the education and awareness programme of the concerned state agency is weak. A national seminar should be conducted to explain the law and share the views among the stakeholders aiming to develop the seed industry in Myanmar. As the country continues on its path of greater liberalization, there are still important roles for the public sector to improve agriculture and to support a private-sector-led seed system. It is expected that these will be facilitated by the forthcoming national seed policy, which is in the initial phase of formulation.

9 Conclusions

39

Aung, M. and F. Goletti (2015). Developing a Competitive Seed Industry in Myanmar. Nay Pyi Taw, Myanmar: Myanmar Policy Forum.

Department of Agriculture (DoA) (2014). Agricultural Extension Division, Department of Agriculture 2013-2014. Annual Report. Nay Pyi Taw, Myanmar.

Department of Agriculture (DoA) (2015). Agricultural Extension Division, Department of Agriculture 2014-2015. Annual Report. Nay Pyi Taw, Myanmar.

FAO Investment Centre (2014). Myanmar Dry Zone Development Programme, Scoping Report. Rome: FAO.

Saing T. and Ngwe, K.M.M. (2011). Sunflower cultivation (Myanmar version). Nay Pyi Taw, Myanmar: Myanmar Agricultural, Forestry, Livestock and Fishery Sciences.

Wageningen UR (2015). Pathways for Developing the Seed Sector of Myanmar: A Scoping Study. Wageningen, The Netherlands.

Mercy Corps (2015). The Dry Zone of Myanmar: A strategic resilience assessment of farming communities. Portland, Oregon: Mercy Corps.

Ministry of Agriculture and Irrigation (MoAI) (2013). Report on Myanmar Census of Agriculture 2010. Nay Pyi Taw, Myanmar.

Ministry of Agriculture and Irrigation (MoAI) (2012). Myanmar agriculture at a glance. Nay Pyi Taw, Myanmar.

Ministry of Agriculture and Irrigation (MoAI) (2013). Myanmar agriculture at a glance. Nay Pyi Taw, Myanmar.

Ministry of Agriculture and Irrigation (MoAI) (2014). Myanmar agriculture at a glance. Nay Pyi Taw, Myanmar.

Ministry of National Planning and Economic Development, Sida, Unicef, UNDP (2011). Integrated Household Living Conditions Survey in Myanmar (2009-2010), Poverty Profile. Nay Pyi Taw, Myanmar.

Myanmar Dry Zone Development Program (2014). Scoping Mission, Dry Zone Development Project, Myanmar; Annex 3 Marketing and Value Chain in the Central Dry Zone. Rome: FAO Investment Centre.

Republic of the Union of Myanmar (2014). Population and housing census of Myanmar, 2014, Provisional result. Nay Pyi Taw, Myanmar.

References

41

Oil crop 1. Crop: Groundnut Sr. no. Name of variety Line no./original name Year released

1. Sin Padaytha-1 M-28 1980 2. Sin Padaytha-2 Jl-24 1982 3. Sin Padaytha-3 ROBOT-31-1 - 4. Magmay Pinpyant-2 C-148-2 - - 5. Magmay-9 Sp-121 - 6. Magmay-10 SP121-070 x SS50/50 - 7. Magmay-11 Schwortz-21/6 - 8. Magmay-12 Tainan-9 - 9. Sin Padaytha-6 Y2G-91062 2001

10. Sin Padaytha-7 ICGV-93382 2001 11. Sin Padaytha-8 ICGV-94310 2007 12. Sin Padaytha-11 YZG-00019 2009 13. Nyaung Oo-1 ICGS(E) (11) x Magway 15 2009 14. Sin Padaytha-12 YZG-03008 2010

2. Crop: Sesame Sr. no. Name of variety Line no./original name Year released

1. Sinyadana-1 Local - 2. Sinyadana-2 Local 2003 3. Magwe-7/9 HC 7/9-3-3-3 - 4. Magwe-2/21 HB 2/21-1-14 - 5. Mnan Nt-27/160 Hnan Ni-25/160 - 6. Sinyadana-12 2011

3. Crop: Sunflower Sr. no. Name of variety Line no./original name Year released

1. Sinshwekyar-1 Chernianka-66 - 2. Sinskwekyar-2 Chakinskyi-269 - 3. Doekhit GOR-104 - 4. Palenet Peredovik - 5. Mahuyar Smena - 6. Yezin Hybrid A 8 x R 15 2002

Appendix 1

Modern Varieties of Seed Released

43

Peas and beans 1. Crop: Black gram

Sr. no. Name of variety Line no./original name Year released

1. Yezin-1 VM-75-1/Pu-19 (India) 1975 2. Yezin-2 VM-75-4/P-45-1 (India) 1975 3. Yezin-5 P-69-354 2004 4. Palehtun Yezin-3 Mutant Line 2006

2. Crop: Green gram Sr. no. Name of variety Line no./original name Year released

1. PediShwewar VR 76-1 Bakti (Indonesia) 1976 2. Yezin-2 VR 76-2/CES-14 (Philippine) 1976 3. Mya Kye Hmone-1 VR 75-7/ML-1 (India) 1975 4. Mya Kye Hmone-2 CES-87 1976 5. Yezin-8 VR-2000-6 / VC-6366-7 2003 6. Yezin-9 VR-2000-1 / VC-1973-A 2003 7. Sike Pyo Yae-1 VC-6469-12-3-4-A 2009 8. Yezin-11 VR-2003-5 2007 9. Yezin-14 YM 03-2-2 2011

3. Crop: Garden pea Sr. no. Name of variety Line no./original name Year released

1. Yezin-1 CC-76-30/HPA-1 (India) 1976 2. Yezin-2 CC-76-4/Yezin (India) - 3. Kyawe Chan Shwe Dinga Local 1976 4. Nga San Pe CC 76-51 1976 5. Yezin-6 CC 04-8 (ICPL-96061) 2009

4. Crop: Butter bean Sr. no. Name of variety Line no./original name Year released

1. Mahlaing Asae Pya PL 76-22 1075 2. Mahlaing 27/30 - 1975

44

5. Crop: Chickpea Sr. no. Name of variety Line no./original name Year released

1. Ayekari CA 25-23/Karachi (India) 1975 2. Shwe Kyay Hmone CA 75-18/8503/27 S (India) 1975 3. Yezin-1 CA 75-9P 436 (India) 1975 4. Sin Kalarpe-1 ICCV 2 2001

5. Sin Kalarpe-2 ICCV 88202 - 6. Yezin-5 CA-85-125 ICCV-3 2000 7. Yezin-6 CA-94-10 ICCV-92944 2000 8. Yezin-8 (ICCL-81001 x ICCC-32) x (ICCC-

49 x Flip-82-IC) x ICCV-3 (or) CA-03-35 Yezin-8

-

9. Shwe Ni Lone Gyi ZCHL-2014 Shwe Ni Lone Gyi 2009 10. Yezin-11 CA-02-25 ICCV 01309 2010

6. Crop: Cowpea Sr. no. Name of variety Line no./original name Year released

1. Yezin-1 Vu-75-3 (American) 1975 2. Yezin-2 Vu-75-4 (American) 1975 3. Sin Paelwinphu VU-02-6 2006

7. Crop: Soybean Sr. no. Name of variety Line no./original name Year released

1. Yezin-5 GM-95-8 Samsoy-1 2003 2. Sin Pae Poke-6 GM-95-9 2008 3. Sin Pae Poke-11 GM-05-25 2008

45

National Seed Committee 1. Deputy Minister, Ministry of Agriculture and Irrigation Chairman

2. Director General, Department of Agriculture, Ministry of Agriculture and Irrigation

Vice-Chairman

3. Director General, Department of Agricultural Planning, Ministry of Agriculture and Irrigation

Member

4. Director General, Foreign Economic Relations Department, Ministry of National Planning and Economic Development

Member

5. Director General, Department of Atomic Energy, Ministry of Science and Technology

Member

6. Director General, Department of Technology Promotion and Coordination, Ministry of Science and Technology

Member

7. Deputy Chief of Police (or) Representative, Myanmar Policy Force, Ministry of Home Affairs

Member

8. Director General, Directorate of Trade, Ministry of Commerce

Member

9. Director General, Customs Department, Ministry of Finance Member

10. Managing Director (now Director General), Department of Industrial Crops Development, Ministry of Agriculture and Irrigation

Member

11. Rector, Yezin Agricultural University, Ministry of Agriculture and Irrigation

Member

12. Director General, Settlement and Land Record Department, Ministry of Agriculture and Irrigation

Member

13. Deputy Managing Director, Cotton and Sericulture Division, Myanmar Industrial Crops Development Enterprise, Ministry of Agriculture and Irrigation

Member

14. Deputy Managing Director, Perennial Crops and Farms Division, Myanmar Industrial Crops Development Enterprise, Ministry of Agriculture and Irrigation

Member

15. Deputy Managing Director, Jute and Fibres Division, Myanmar Industrial Crops Development Enterprise, Ministry of Agriculture and Irrigation

Member

16. Deputy Managing Director, Sugarcane Division, Myanmar Industrial Crops Development Enterprise, Ministry of Agriculture and Irrigation

Member

Appendix 2

National Seed Committee and Technical Seed Committee Members

46

17. Director General, Department of Agricultural Research, Ministry of Agriculture and Irrigation

Secretary

18. Deputy Director General, Department of Agricultural Research, Ministry of Agriculture and Irrigation

Joint Secretary 1

19. Director, Department of Agricultural Research, Ministry of Agriculture and Irrigation

Joint Secretary 2

Technical Seed Committee 1. Director General, Department of Agriculture, Ministry of

Agriculture and Irrigation Chairman

2. Director General, Department of Agricultural Research, Ministry of Agriculture and Irrigation

Vice-chairman

3. Director, Agricultural Extension Division, Department of Agriculture, Ministry of Agriculture and Irrigation

Member

4. Director, Rice Division, Department of Agricultural Research, Ministry of Agriculture and Irrigation

Member

5. Professor, Botany Department, Yangon University Member

6. Director, Cotton & Sericulture Education &Technology Development Division, Department of Myanmar Industrial Crops Development, Ministry of Agriculture and Irrigation

Member

7. Director, Perennial Crops Education & Technology Development Division, Department of Industrial Crops Development, Ministry of Agriculture and Irrigation

Member

8. Director, Jute & Allied Fiber Education & Technology Development Division, Department of Industrial Crops Development, Ministry of Agriculture and Irrigation

Member

9. Director, Sugarcane Education & Technology Development Division, Department of Industrial Crops Development, Ministry of Agriculture and Irrigation

Member

10. Director, Department of Industrial Crops Development, Ministry of Agriculture and Irrigation

Member

11. Representative, Yezin Agricultural University, Ministry of Agriculture and Irrigation

Member

12. Director, Land Use Division, Department of Agriculture, Ministry of Agriculture and Irrigation

Member

13. Director, Plant Protection Division, Department of Agriculture, Ministry of Agriculture and Irrigation

Member

14. Director, Horticulture and Biotechnology Division, Department of Agriculture, Ministry of Agriculture and Irrigation

Member

15. Deputy Director General, Department of Agricultural Research, Ministry of Agriculture and Irrigation

Secretary

16. Director, Seed Division, Department of Agriculture Joint Secretary

47

Source: DoA

*Farms with names underlined are located in the Dry Zone.

Appendix 3

Seed Farms under the

Department of Agriculture

No. Farm name* Year established Crop of research

1. Nankwayt 1970 corn, sesame, niger 2. Baran 1957 paddy 3. Waidi 1980 paddy 4. Mandalay 1907 paddy, chickpea 5. Mahlaing 1920 pigeon pea, green gram, butter bean 6. Mudon 1926 paddy 7. Sittway 1923 paddy 8. Hmawbi 1908 paddy 9. Banyin 1959 yar paddy, corn, wheat, bean, pigeon 10. Heho 1926 paddy, wheat, corn, chickpea 11. Zilun 1991 paddy, sugar cane 12. Whashaung 1968 paddy 13. Demawsoe 1999 paddy, chickpea 14. Kyemon 1980 sesame, butter bean, green gram 15. Chipar 1929 paddy 16. Gwaygone 1967 paddy 17. Kadote 1971 paddy 18. Kyaungsu 1982 paddy 19. Bago 1926 paddy 20. Pauktabin 1999 paddy, chickpea 21. Oakphyat 1930 paddy 22. Paungte 1936 paddy 23. Thitcho 1980 paddy 24. Pwintphyu 1929 paddy, chickpea 25. Sintkai 1935 paddy, chickpea 26. Thowgwa 1940 paddy, green gram 27. Taryaw 1962 paddy 28. Tankhuntai 1966 paddy 29. Shwelaung-1 1980 paddy 30. Shwelaung-2 187 paddy 31. Thayaungchaung 1935 paddy 32. Aukwingyi 1922 paddy

48

No. Farm name* Year established Crop of research

1. Moehnyin 1937 paddy, bean 2. Pangone 1983 paddy, chickpea, wheat 3. Zaloke 1980-81 chickpea, wheat, pigeon pea, millet 4. Kyaukse 1959 paddy, millet 5. Kyaukdadar 1954 paddy, peanut 6. Myinchan 1954 pigeon pea, green gram, millet 7. The`gone 1965 paddy 8. Tatkone 1914 maize, green gram, chickpea, sunflower 9. Sibin 1982 hybrid sunflower, green gram, paddy

10. Loykaw 1953 paddy, maize 11. Kyainton 1998 paddy, maize 12. Aungban 1980 yarpaddy, maize, bean, wheat 13. Taryaw 1998 paddy 14. Kyaukme 1962 paddy, bean, niger 15. Naungmon 1998 millet, paddy, bean 16. Htonepho 1960 potato, garlic, grapes 17. Azin-2 2002 durian, rambutan, pomelo 18. Dawei(7)Miles 1999 durian, rambutan, pomelo 19. Kinpuntaung 1984 sugar cane 20. Myitthar 1957 long staple cotton 21. Myaungmya 1926 paddy, jute 22. Nyaungoo 1985 sesame, pigeon pea, peanut, green gram 23. Magway 1927 sesame, peanut, sunflower 24. Latpantan 1935 paddy, green gram

Source: DAR

*Farms with names underlined are located in the Dry Zone.

Appendix 4

Research Farms under the

Department of Agricultural Research

49

No. Location* Township Processing capacity (ton/hr)

1. Paungte Paungte 1.0

2. Mandalay Mandalay 1.0

3. Lunkyaw Kyaukse 1.0

4. Sibin Yamethin 1.5

5. Chaungmagyi Pyawbwe 1.5

6. Heho Heho 0.5

7. Tatkone Tatkone 0.5

8. Mahliang Mahliang 0.5

9. Aunglan Aunglan 1.0

10. Thayaungchaung Pathein 3.0

11. Latpantan Latpantan 3.0

12. Myaungmya Myaungmya 2.0

13. Patheingyi Patheingyi 3.0

14. Kyemon Monywa 3.0

15. Kadote Daikoo 3.0

16. Hmawbi Hmawbi 2.0

17. Tankhuntai Hinthada 3.0

Source: DoA

*Seed processing plants with names underlined are located in the Dry Zone.

Appendix 5

Seed Processing Plants Constructed with the Assistance of Seed Development

Projects in Myanmar (1986)

50

Sr. No. Botanical Name English Common Name Myanmar Common Name

1. Vigna mungo Black gram Matpe 2. V. radiata Green gram Pedisein 3. V. radiata Green gram Penauk (Krishna mung) 4. V. unguiculata Cowpea Bocate 5. V. unguiculate Cowpea Pelun 6. V. umbellata Rice bean Peyin 7. Phaseolus lunatus Lima bean Sultapya 8. P. lunatus Lima bean (Butter bean) Htawbutpe 9. P. lunatus Lima bean Sultani

10. P. lunatus Lima bean (Duffin bean) Pebyugale 11. P. vulgaris French bean Bosape 12. Pisum sativum Garden pea Sadawpe 13. Cajanus cajan Pigeon pea Pesingone 14. Cicer arietinum Chickpea Kalape 15. Lablab purpureus Lablab bean Pegyi 16. Glycine max Soybean Peboke 17. Macrotyloma uniflorum Horse gram Pebizat 18. Lens culinaris Lentil Peyazar

Appendix 6

Botanical and Vernacular Names of Grain Legumes Grown in Myanmar

51

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