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Department of Agriculture and Cooperation launched a Central Sector Scheme for establishment and maintanance of Seed Bank. The Scheme was launched during the year 1999-2000 with a total outlay of Rs. 37.80 crores for 9 th Plan and the scheme continued during 10th Plan also. The scheme is operated through National and State level Seeds Corporations. Under the Scheme, the Corporations produce and maintain stock of Certified and Foundations Seeds of identified crops and varieties to meet the exigencies during calamity. The advantage of the Scheme is available to all the State and Union Territories.

The State Farms Corporation and National Seeds Corporation are designated as Nodal Agencies to co-ordinate with the participating agencies for Foundation and Certified seeds respectively.

The Scheme provisions one time revolving fund for maintenance cost in respect of transportation, processing and packing charges, storage charges, storage losses, revalidation, insurance charges and price differentials for undistributed quantity of seed every year. The Scheme also provisions for grant for construction of seed store and data bank for information related to seed produced and handeled under the Scheme.

Under the Scheme, for maintenance of Certified and Foundation seed of identified crops,grants are provided to the participating Seed Corporation s for meeting the cost of revolving funds (i.e. 50% amount of procurement cost), revalidation charges (@Rs. 100/- per Qtl.),transportation cost (@ Rs. 100/- per Qtl.), processing and packing charges (@ Rs. 100/- per Qtl.), storage cost (@ Rs. 8/- per Qtl. for 6 months), storage losses (@ 0.25% of value seeds.), insurance cost of seed during storage (@ 0.5%of value seeds.) and price differential for undistributed quantity of seeds. This Scheme has also a provision for creation of storage facilties as well as setting up of data Bank for facilitating fst flow of information on the availability of seeds. Assistance is also available for State Seed Certification Agencies for strengthening of quality control infrastructure.