Next due
20 OCTGSTR-3B · Summary return · Sep 2026in 4 days 21 OCTTax Audit Report · Form 3CA/3CB · AY 2026-27 · extended from 30 Sepin 5 days 30 OCTAOC-4 · Financial statements · FY 2025-26in 14 days 7 NOVTDS / TCS deposit · Deducted in Oct 2026in 22 days 11 NOVGSTR-1 · Outward supplies · Oct 2026in 26 days 15 NOVPF & ESI · Contributions · Oct 2026in 30 days 21 NOVITR filing · Audit cases · AY 2026-27 · extended from 31 Octin 36 days 29 NOVMGT-7 / 7A · Annual return · FY 2025-26in 44 days
All due dates

Sections 27 and 28(1)–(3) of the Protection of Plant Varieties and Farmers' Rights Act, 2001: deposit of seed in the National Gene Bank and the exclusive right to produce, sell, market, distribute, import or export

The breeder must deposit seeds or propagating material, including parental line seeds, in the National Gene Bank in the quantity and time the regulations specify, at the breeder's...

Published
Updated
Reading time
7 min
Views
7
Questions
6 answered
  • Expert Reviewed
  • Medium Complexity
Topic
IP — Other
Published
October 3, 2026
Last updated
Oct 3, 2026
Reading time
7 min
0:00
Last updated: October 2026Verified against: Government sources

A registered breeder must deposit seed of the variety in the National Gene Bank and in return holds an exclusive right to produce, sell, market, distribute, import or export it. The breeder can authorise others to deal with the variety, but only within the limits and in the form the regulations lay down.

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 27: deposit in the National Gene Bank

Sub-sectionProvision
27(1)The breeder shall deposit such quantity of seeds or propagating material, including parental line seeds, of the registered variety in the National Gene Bank as specified in the regulations, "for reproduction purpose at the breeder's expense", within the time the regulation specifies
27(2)The deposit shall be made to the National Gene Bank specified by the Authority

The quantity is not in the Act. Regulation 12 of the 2006 Regulations says the quantities, including parental line seeds and varieties under DUS testing, are those specified in the DUS test guidelines under Regulation 11, published in the Journal of the Authority; see Regulations 10 to 13. Rule 29(10) separately requires the samples and parental lines deposited at the National Gene Bank to present maintainable standards of generic purity, uniformity, germination and sanitary and phytosanitary quality.

The deposit has a practical purpose beyond record-keeping: if a compulsory licence is granted, the Authority makes available to the licensee the reproductive material stored in the National Gene Bank or any other centre (s.50). Failure to comply with the Act, rules or regulations is also a ground for revocation under section 34(f). If you license seed to others, our agreement drafting team can build the deposit and supply obligations into the contract.

Section 28(1): the exclusive right

"Subject to the other provisions of this Act, a certificate of registration for a variety issued under this Act shall confer an exclusive right on the breeder or his successor, his agent or licensee, to produce, sell, market, distribute, import or export the variety."

Points to read carefully:

  • The six verbs are produce, sell, market, distribute, import and export. The Act does not give a separate right to "use" in this clause.
  • The right belongs to the breeder or successor, and also to the agent or licensee. An agent or licensee derives title from the breeder and must be registered under section 28(4); see section 28(4)-(11).
  • The opening words "subject to the other provisions" bring in the limits elsewhere: farmers' rights (section 39), researchers' rights (section 30), compulsory licence (Chapter VII), and others.

The extant-variety proviso

"In the case of an extant variety, unless a breeder or his successor establishes his right, the Central Government, and in cases where such extant variety is notified for a State or for any area thereof under section 5 of the Seeds Act, 1966, the State Government, shall be deemed to be the owner of such right." So an extant variety does not automatically belong to anyone claiming it. Unless the breeder or successor establishes the right, the Government is deemed the owner, and the State Government where the variety is notified for a State or area under the Seeds Act. For the Seeds Act, 1966 itself, check the current law separately.

Section 28(2) and (3): authorising others

A breeder "may authorise any person to produce, sell, market or otherwise deal with the variety registered under this Act subject to such limitations and conditions as may be specified by regulations" (s.28(2)), and "every authorisation under this section shall be in such form as may be specified by regulations" (s.28(3)).

Regulation 13 of the 2006 Regulations provides, in summary, that:

  • the authorisation is made in Form 1A;
  • it is executed on non-judicial stamp paper conforming to the requirements of the Indian Stamp Act, 1899 (no rate is stated here);
  • it is attested by the registered breeder or an authorised person in the presence of two witnesses, and registered in accordance with the rules;
  • it must clearly identify the rights conferred, specify the term, and identify the territories, which must not violate rights granted to any licensee under the Act.

An invented example: Agrigen Biotech Ltd, a registered breeder of a cotton hybrid, wants Rajput Seeds to multiply and sell its seed in two named States for five years. It prepares Form 1A on stamp paper, names the rights (production and sale), the term and the two States, signs it before two witnesses and has it registered. Rajput Seeds then applies to be registered as licensee under section 28(4). If the form had left the territory unclear, it would not meet Regulation 13.

A licence that identifies the right, the term and the territory precisely is easier to register and to enforce.

What happens next

An authorisation is not the end of the process. To enjoy the benefit as a registered agent or licensee (including the right to sue), the person must register under section 28(4). The related rules are in rules 45 to 49. Infringement of the exclusive right is dealt with in sections 64 to 67.

Need help drafting a variety licence?

A licence to produce or sell a registered variety must identify the right, the term and the territory, and must be in the form the Regulations require. If you are a breeder or a seed company, talk to us about agreement drafting for your authorisations.

Key takeaways

  • The breeder must deposit seed and parental line seed in the National Gene Bank at the breeder's expense.
  • Registration confers an exclusive right to produce, sell, market, distribute, import or export.
  • For an extant variety, the Government is deemed owner unless the breeder or successor establishes the right.
  • Authorisation must be within regulatory limits and in the specified form (Form 1A).
  • Registered agents and licensees are the next step (s.28(4)).

Read next

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 Exclusive right

  • 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.

What must I deposit in the National Gene Bank?

Seeds or propagating material, including parental line seeds, in the quantity the regulations specify, at your own expense (s.27(1)).

Who gets the exclusive right?

The breeder or his successor, and his agent or licensee (s.28(1)).

Know which registrations your business actually needs — both too few and too many cost money.

— TaxClue Compliance Desk

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

Related Services & Guides

Was this article helpful?
About the author
13,350 articles
Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

Last reviewed: Live

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.

Seeds or propagating material, including parental line seeds, in the quantity the regulations specify, at your own expense (s.27(1)).

The breeder or his successor, and his agent or licensee (s.28(1)).

Produce, sell, market, distribute, import or export the variety.

Unless a breeder or successor establishes the right, the Central Government, or the State Government where the variety is notified for a State or area under the Seeds Act, 1966, is deemed to be the owner.

In the form specified by regulations; Regulation 13 calls for Form 1A.

No. It is "subject to the other provisions of this Act", including farmers' rights, researchers' rights and compulsory licensing.