High population density in Bangladesh implies that agricultural productivity improvement is key to ensure food security. This raises the need for increased research and development investment in the agricultural sector. Although Bangladesh has enacted various seed policy reforms since 1990s to attract the private sector, the seed sector in Bangladesh still remains less developed and relies heavily on imports for the supply of quality seeds. Unlike in Bangladesh, the seed policy reforms in India contributed to the development of a competitive seed industry in India. In this study, we examine the characteristics of seed sector in Bangladesh, conduct a comparative analysis of seed policy reforms in Bangladesh and India, and empirically examine the effect of Bangladesh seed policy reforms on cereal crops’ productivity. Results from the study have implications for seed industry stakeholders and policy makers in developing countries, particularly in designing strategies and policies for seed industry development.