The Adoption
and Economics of Bt Cotton in India - conclusions only
http://www.iimahd.ernet.in/publications/data/2006-09-04_vgandhi.pdf
INDIAN INSTITUTE OF MANAGEMENT
AHMEDABAD INDIA
Research and Publications
The Adoption and Economics of Bt Cotton in India:
Preliminary Results from a Study
Vasant P. Gandhi
N.V. Namboodiri
W.P. No.2006-09-04
September 2006
CONCLUSIONS
The paper presents preliminary results from a study of the economics and
adoption of Bt cotton
in India. Biotech crops, which made their appearance in the world about a
decade ago, have
gained substantial popularity and acceptance in many parts of the world.
However, their
introduction in
the country. Cotton is an important commercial crop in
particularly from extensive pest damage and poor yields. In light of this, Bt cotton offers a very
promising solution to these serious problems.
Data from the survey, which covered the important cotton states of Gujarat,
Andhra Pradesh and Tamil Nadu indicates
that Bt cotton offers good resistance to bollworms
as well as several other pests. The incidence of these pests is reported to
be considerably lower
in Bt cotton versus Non-Bt cotton. The yields of Bt cotton are found to be higher and the yield
increase statistically significant in all the states under both irrigated
and rain-fed conditions. As
a result, given the good market acceptance of the product, the value of
output per hectare is
higher in all the states and conditions. The question of higher cost of
cultivation exists because
of high seed cost and not commensurate reduction in pesticide cost. However,
the profit is
found to be higher in all the states to the estimated extent of about 80-90
percent on an average
when the effect of the associated inputs are
included. The returns are highest in Maharashtra
followed by
that farmers find advantage in pest incidence, pesticide cost, cotton
quality, yield and profit.
Almost all farmers indicate that they plan to plant Bt
cotton in the future. To increase the
benefits from the technology, the farmers strongly urge reduction in the
seed cost and greater
field extension and demonstration work on the correct practices.
Thomas R. DeGregori, Ph.D.
Professor of Economics
University of Houston
Department of Economics
204 McElhinney Hall
Houston, Texas 77204-5019
Ph. 001 - 1 - 713 743-3838
Fax 001 - 1 - 713 743-3798
Email trdegreg@uh.edu
Web homepage http://www.uh.edu/~trdegreg