This study was conducted in Imphal West district of Manipur so as to assess the impact of the ICAR-Participatory Seed Production (PSP) on the income of the small-holder farmers who have been producing quality seeds of rice. Altogether 50 farmers who cultivates ICAR most popular rice varieties (RC-Maniphou-12; RC-maniphou-13 and RC-maniphou-7) were selected for the study using purposive sampling technique. The study incorporates both the participating farmers and the implementing agency (ICAR) so as to take the complete information for analysis of the data. The study reveals that the participating farmers perceived the knowledge of the quality seed production and it is also found that the implementing agency has imparted the complete package and practices of seed production along with the necessary seed certification modalities. With the use of the ICAR varieties (RC-Maniphou-7; RC-Maniphou-12 and RC-Maniphou-13), it is also found that the yield of the rice increases by 37.5 %; 28.5 % and 62.5 % respectively as compared to the yield of the local cultivars and conventional rice production system. The results also show that 22% of the participating farmers have cultivated and produced quality rice seeds in both the pre-kharif and kharif season. 82% of the farmers’ reveals that their incomes have been increased almost by doubled whereas 18% have realized more than 50%. It is also found that almost all the seed producers can reduced their cost of cultivation upto 9 %. Lack of sufficient revolving fund for timely payment for buyback of seeds from farmers, high transportation charges and lack of manpower and storage facilities are the major constraints face by the implementing agencies whereas delayed payment for the seed, outbreak of major pests & diseases and natural calamities are the major problems encountered by the participating rice seed growers of the district.