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The present study was carried out with a view to study the growth pattern and instability in seed production, future of demand and supply, economics and processing of groundnut seeds and problems of seed industry in Gujarat. A sample of 51 farmers was selected purposively from the five talukas of Junagadh district. The primary data about cost of production and marketing were collected for the agricultural year 2002-03. Secondary data regarding area and production of quality seeds for most of the crops were collected from published sources for the period 1986-2001. The primary analysis of data was done by using tabular analysis. Compound growth rates for area, production and productivity were estimated for the state as a whole as well as for different seed producing agencies. Instability in area and production of seeds was measured by using coefficient of variation. The demand and supply projection of seeds for different crops was made through using trend equation. The broad findings of the study revealed that the compound growth rates found positive for area and production of quality seeds for the state as a whole but for yield it was found negative.