Rice seeds collected from Sarocladium oryzae inoculated plants produced more discoloured grain, chaffiness and recorded much lower seed germination than seeds collected from healthy plants in all the three cultivars tested. The germination, chaffiness and discolouration in healthy plants were found to be in the range of 70.50 to 93.50 per cent, 5.5 to 17.75 per cent and 4 to 18 per cent respectively. There was a progressive and significant reduction in total sugar, reducing sugar and non reducing sugar content of rice seeds with varying degree of seed infection caused by S. oryzae The increase in phenol content due to S. oryzae infection ranged from 15.74 to 70.78 per cent and increase being proportional to the per cent S. oryzae seed infection.