BACKGROUND: Traditional rice seed coating techniques involve the use of chemical pesticides, which can damage the seed in the process and cause possible physical and environmental damage. Increasing knowledge and concern about the traditional applications have brought new attention to the industry and the search for a novel coating agent that is effective, safe and environmentally friendly. A new type of organic rice seed coating agent was developed using liquid-based polymeric adhesives. By using chitosan as the main raw material, modified with sodium hydroxide and polymerised with plant growth regulators and other additives, the novel seed coating agent is a safer, cheaper and more environmentally friendly alternative. RESULTS: The novel seed coating agent significantly enhanced sprout growth over traditional agents. We found it has obvious biological advantages: it stimulates the seedling growth of rice, advances the growth of root, improves root activity and increases the crop yield in the germination test and field trial. Compared with the traditional rice seed coating agent, the crop yield of seeds coated by the novel seed coating agent was increased by 5%, and at 25% less cost. The fungal inhibition test of the novel seed coating agent and acute toxicity test on fish showed that it has an obvious fungal inhibitory effect and a higher safety index during usage and disposal. CONCLUSION: This result suggests that treating seeds with the novel seed coating agent has significant agricultural implications through the enhanced seed vigour as reflected in growth. it is efficient and effective, resulting in better seed and crop protection. The novel seed coating agent demonstrates unique characteristics with great economic and environmental benefits. (C) 2009 Society of Chemical Industry