This study examines the market chain structure and efficiency of fodder crop seed distribution in Eastern Uttar Pradesh, India, focusing on both formal and informal marketing systems. Based on primary and secondary data collected during 2022–2024, the research surveyed 600 farmers and 150 marketing chain actors across five purposively selected districts—Ayodhya, Azamgarh, Varanasi, Jaunpur, and Ballia— using a three-stage random sampling method. The study assessed productivity gaps, marketing costs, margins, and overall efficiency in the distribution of major fodder crop seeds, including jowar, bajra, maize, and berseem. Five marketing chains were identified: three formal (public and private sector-led) and two informal. Marketing Chain III (Distributors–Wholesalers–Retailers–Farmers), a formal private sector route, was the most dominant in formal seed distribution, while Chain V (Farmers’ grains–Village traders–Retailers–Farmers) played a significant role in the informal sector. Productivity analysis revealed

considerable yield gaps between formal and informal seed sources: jowar (35.75%), bajra (30.25%), berseem (23.18%), and maize (15.33%), indicating the higher potential of formal seed systems. Although informal Chain V offered lower seed prices to end users, it incurred higher marketing costs and margins, particularly at the retailer level, reducing its overall efficiency. Marketing efficiency, calculated using the Acharya-Agarwal formula, was consistently higher in formal Chain III across all crops. The findings suggest that while strengthening the formal sector is important, enhancing fodder seed distribution efficiency requires promoting local seed production among large farmers, supported by assured markets and fair pricing mechanisms.