Economic Performance of Bt Cotton Technology: A Case Study



This paper attempts to study the adoption and economic performance of Bt cotton technology by the farmers in the Marathwada region. The study used primary data collected from 312 farm households selected by using multi-stage random sampling method. The primary data were collected through well-structured questionnaire during the agricultural year 2013-14. The sample included 192 small, 83 medium and 38 large farmers.

The study revealed that the farmers took three to four years to switch over completely to the Bt cotton technology. The study indicated that the per acre yield of Bt cotton was higher than that of non-Bt cotton by 73.49 per cent; and this higher yield benefit was accrued to farmers belonging to all categories. The study further revealed that the per acre real value of Bt cotton output was higher by 61.60 per cent in case of Bt cotton. The cultivation of Bt cotton was marginally profitable if land rent is included in the total cost of cultivation and it is highly profitable to the paid-out costs. The study concluded that a situation wherein Bt cotton technology is profitable over paid-out costs does not signify a good strategy to survive in agriculture. The situation needs to be corrected through upward revision of minimum support price for Bt cotton and subsidization of inputs such as seeds, fertilizers and pesticides.

Keywords: Adoption, Bt cotton, paid-out cost, profitable

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ISSN : 2251-1555