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Section 39 of the Protection of Plant Varieties and Farmers' Rights Act, 2001: farmers' rights to register, to recognition and reward, to save, use, sow, exchange and sell farm produce, and to compensation for failed performance

"Notwithstanding anything contained in this Act," a farmer who has bred a new variety is entitled to registration and protection like a breeder; a farmers' variety can be...

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Last updated: October 2026Verified against: Government sources

Section 39 is the centre of the Act's farmers' rights. It lets a farmer register a variety like a breeder, gives farmers' varieties a simpler route, rewards conservers from the Gene Fund, preserves the traditional right to save, sow, exchange and sell farm produce, and gives compensation when seed fails to perform as the breeder disclosed.

Provisions as amended up to the Tribunals Reforms Act, 2021 (in force 4 April 2021); no later amendment as of 3 October 2026. Later notifications should be checked on plantauthority.gov.in.

Section 39(1): four rights

ClauseRight
(i)A farmer who has bred or developed a new variety is entitled for registration and other protection in like manner as a breeder
(ii)A farmers' variety is entitled for registration if the application contains declarations as specified in clause (h) of section 18(1)
(iii)A farmer engaged in conservation of genetic resources of land races and wild relatives of economic plants and their improvement through selection and preservation is entitled, in the prescribed manner, to recognition and reward from the Gene Fund, provided the material so selected and preserved has been used as donors of genes in varieties registrable under the Act
(iv)A farmer is deemed entitled to save, use, sow, resow, exchange, share or sell his farm produce including seed of a variety protected under the Act in the same manner as he was entitled before the coming into force of the Act, but not to sell branded seed

Clause (i): the farmer as breeder

A farmer who breeds a new variety is placed on the same footing as any breeder. A farmer or farmer group planning a first application can take a legal consultation to check the route. Section 16(1)(d) lets a farmer, group or community of farmers apply; see section 16.

Clause (ii): farmers' varieties

The route for a farmers' variety is lighter: the application contains the declarations in section 18(1)(h) (that genetic or parental material was lawfully acquired), and the proviso to section 18(1) exempts a farmers' variety application from clauses (b) to (i) of that sub-section otherwise. The application form is the Sixth Schedule (rule 25A); see section 18.

Clause (iii): recognition and reward

The reward is "in the prescribed manner" and from the Gene Fund. The proviso sets a condition: the material selected and preserved must have been "used as donors of genes in varieties registrable under this Act". The Recognition and Reward Rules are explained in the Plant Genome Saviour Farmer Reward article.

Clause (iv): save, sow, exchange, sell, but not branded seed

A farmer "shall be deemed to be entitled to save, use, sow resow, exchange, share or sell his farm produce including seed of a variety protected under this Act in the same manner as he was entitled before the coming into force of this Act". The proviso: "the farmer shall not be entitled to sell branded seed of a variety protected under this Act."

The Explanation defines the limit: "'branded seed' means any seed put in a package or any other container and labelled in a manner indicating that such seed is of a variety protected under this Act."

ActivityPosition under clause (iv)
Save seed from the cropPermitted
Use and sow or resow itPermitted
Exchange or share itPermitted
Sell farm produce including seedPermitted in the same manner as before the Act
Sell seed in a package or container labelled as a variety protected under the ActNot permitted (branded seed)

The test for branded seed is the packaging and the label: a package or container, and a label indicating that the seed is of a protected variety. It is not enough that the variety is protected; the seed must be put up and labelled in that way. A farmer who sells loose seed from his own harvest is not selling branded seed on that definition.

An invented example: Meena, a farmer in Haryana, saves seed from her wheat crop, sows it next season and exchanges some with a neighbour. All of that is within clause (iv). If she buys a labelled packet of a protected variety and resells the packets as they are, she would be selling branded seed.

If you are a seed company or a farmer organisation setting up a seed-sharing or sale arrangement, a legal consultation can help you check which side of the branded-seed line it falls on.

Section 39(2): disclosure of expected performance and compensation

"Where any propagating material of a variety registered under this Act has been sold to a farmer or a group of farmers or any organisation of farmers, the breeder of such variety shall disclose to the farmer or the group of farmers or the organisation of farmers, as the case may be, the expected performance under given conditions, and if such propagating material fails to provide such performance under such given conditions", the farmer, group or organisation "may claim compensation in the prescribed manner before the Authority".

Procedure under the Act:

  1. The claim is made before the Authority in the prescribed manner.
  2. The Authority gives notice to the breeder and an opportunity to file opposition in the prescribed manner.
  3. After hearing the parties, the Authority may direct the breeder to pay such compensation as it deems fit.

Under rules 66 and 67, the claim is made by the farmer, group or organisation to the Authority in Form PV-25; the breeder has three months from receipt of notice to file opposition in Form PV-26; if he does not, it is presumed that he has no opposition and the claim is decided; and the Authority, after hearing both parties, may direct payment. See rules 66 to 70. Farmers pay no fees in proceedings before the Authority (section 44). An order on compensation is appealable to the High Court under section 56(1)(e).

The section does not say what the "expected performance" disclosure must contain or in what form; it says only that it must be disclosed to the buyer. A breeder should keep a record of what was disclosed with each sale.

Need help with farmers' rights?

Farmers, farmer producer organisations and seed companies each have different stakes in section 39. We can help you understand a seed-saving or compensation question and what to file. Speak to us through a legal consultation.

Key takeaways

  • A farmer who breeds a new variety has the same registration rights as a breeder.
  • A farmers' variety is registered on the section 18(1)(h) declarations.
  • Conservers of land races and wild relatives can receive recognition and reward from the Gene Fund.
  • Farmers may save, use, sow, resow, exchange, share or sell farm produce including seed, but not branded seed.
  • Breeders must disclose expected performance; failure to perform can lead to a compensation order.

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Disclaimer: Based on the Protection of Plant Varieties and Farmers' Rights Act, 2001 as amended up to the Tribunals Reforms Act, 2021, the PPV&FR Rules, 2003 as amended up to G.S.R. 803(E) of 16 November 2021, and the regulations, rules and scheme named in the article, as published by the PPV&FR Authority and consulted on 3 October 2026. Later notifications should be checked on plantauthority.gov.in. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 39

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Can a farmer save and replant seed of a protected variety?

Yes. Section 39(1)(iv) deems a farmer entitled to save, use, sow, resow, exchange, share or sell farm produce including seed in the same manner as before the Act.

What is branded seed?

Seed put in a package or other container and labelled to indicate that it is of a variety protected under the Act (Explanation to s.39(1)).

A due date missed is rarely a matter of law — it is almost always a matter of calendar.

— TaxClue Compliance Desk

Section 39: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Yes. Section 39(1)(iv) deems a farmer entitled to save, use, sow, resow, exchange, share or sell farm produce including seed in the same manner as before the Act.

Seed put in a package or other container and labelled to indicate that it is of a variety protected under the Act (Explanation to s.39(1)).

No. The proviso says he shall not.

Section 44 says a farmer, group of farmers or village community is not liable to pay fees in any proceeding before the Authority, Registrar or the High Court under the Act or the Rules.

The expected performance under given conditions (s.39(2)).

A farmer, a group of farmers or an organisation of farmers to whom propagating material was sold.