Decentralisation in seed production and distribution can lead to the availability of good quality seed to farmers and boost total production. This increases food self-sufficiency, keeping other production factors constant, by increasing the seed and variety replacement rate (Joshi, 2001). Apart from government institutions, some private organisations and farmers’ groups are also involved in the seed business (seed production and marketing). In the following study, we examine the effectiveness of the seed business managed by farmers’ groups on seed production and marketing and attempt to draw lessons from this. It was envisaged that lessons learnt from such a study could be used to develop improved methods of seed production and marketing, in order to meet local and national demands for seed. The findings of two case studies are presented in this report.