Vasant P. Gandhi Dinesh Jain Introduction of Biotechnology in India's Agriculture Impact, Performance and Economics 4^ Spri ringer gcggtaaion» XX3ME AHMEDABAP
Contents Part I Introduction 1 Introduction and Objectives of the Study 3 1.1 Introduction 3 1.2 Objectives and Methodology of the Study 4 References 5 2 An Overview of Cotton in India 7 2.1 Introduction 7 2.2 World Scenario 7 2.3 Cotton Cultivation in India: Recent Performance 7 2.4 Geographica! Distribution of Area and Production of Cotton 10 2.5 Recent Performance of Cotton Cultivation in the Selected States 11 3 Development and Adoption of Bt Cotton 17 3.1 Introduction 17 3.2 Review of Literature 19 3.2.1 PesticideUse 20 3.2.2 Cost of Production and Yield 22 3.2.3 Bt Cotton Seed Price 22 3.2.4 Environmental Considerations 23 3.2.5 Voices for and Against Bt Cotton 23 3.3 Adoption of Bt Cotton in India 24 References 25 Part II Bt Cotton vis-a-vis Non-Bt Cotton Overall in India 4 Sampling and Methodology of the Study Across the States 29 4.1 Sample Design 29 ix
x Contents 5 Nature and Performance of Bt Cotton vs. Non-Bt Cotton Across the States 33 5.1 Introduction 33 5.2 Cropping Pattern 33 5.3 Area Under Cotton 36 5.4 Cotton Varieties Used by the Sample Households 36 5.5 Average Cost of Seeds Used 38 5.6 Application of Pesticides 39 6 Economics of Bt Cotton vs. Non-Bt Cotton Across the States 41 6.1 Introduction 41 6.2 Average Bt and Non-Bt Cotton Yields 41 6.3 Cost of Production, Value of Output and Profit 41 6.4 Econometric Analysis of the Performance of Bt Cotton vs. Non-Bt Cotton 50 7 Farmers' Perceptions on Various Features of Bt Cotton 53 7.1 Observation of Farmer Households in Andhra Pradesh 53 7.2 Observations of Farmer Households in Gujarat 54 7.3 Observations of Farmer Households in Maharashtra 55 7.4 Observations of Sample Farmer Households from Tamil Nadu 61 8 Consolidated Summary and Conclusions 63 8.1 Bt Cotton Technology 63 8.2 Cotton in India 64 8.3 Cotton in the Study States 65 8.4 Data and Sampling 65 8.5 Varieties Grown 66 8.6 Cost of Seeds 66 8.7 Application of Pesticides 66 8.8 Yields of Bt and Non-Bt Cotton 67 8.9 Cost of Production, Value of Output and Profit 67 8.10 Results of Econometric Analysis 67 8.11 General Observations from Farmers 68 Part III State Study 1: Andhra Pradesh 9 Cotton Cultivation in Andhra Pradesh 73 9.1 Importance of Cotton in the Cropping Pattern of the State 73 9.2 Area, Production and Productivity Trends in Cotton in the State 73 9.3 District Wise Pattern of Cotton Cultivation 76 9.4 Introduction of Bt Cotton to the State 80 9.5 Pest Incidence 83
Contents xi 10 Sampling and Methodology 85 10.1 Sample Design 85 10.1.1 Selection of Sample Districts/Mandals/Villages 85 10.1.2 Selection of Sample Farmer Households 86 10.1.3 Method of Data Collection and Reference Year 87 10.1.4 Method of Analysis 87 11 Nature and Performance of Bt Cotton vs. Non-Bt Cotton In Andhra Pradesh 89 11.1 Introduction 89 11.2 Cropping Pattern 89 11.3 Area Under Cotton 92 11.4 Cotton Varieties Used by the Sample Households 93 11.5 Average Cost of Seed Used 95 11.6 Application of Pesticides 99 12 Economics of Bt Cotton vs. Non-Bt Cotton in Andhra Pradesh 105 12.1 Introduction 105 12.2 Average Bt and Non-Bt Cotton Yields 105 12.3 Cost of Production, Value of Output and Profit 109 12.4 Econometric Analysis of the Performance of Bt Cotton vs. Non-Bt Cotton 112 13 Farmers' Perceptions on Various Features of Bt Cotton in Andhra Pradesh 115 13.1 Some Basic Features of Bt Cotton: Views of Bt Cotton Sample Farmer Households 115 13.2 Agronomie Features of Bt Cotton: Response ofbtgrowers 119 13.2.1 Flowering 119 13.2.2 Plant Size, Boll Size and Relative Number of Pickings 119 13.3 Farmers' Perception on Advantages or Disadvantages of Bt Cotton vis-ä-vis Non-Bt Cotton 121 13.4 Measures Suggested by Sample Farmers to Improve the Acceptance of Bt Cotton 125 Part IV State Study 2: Gujarat 14 Cotton Cultivation in Gujarat 131 14.1 Climate and Soil Type 131 14.2 Irrigation and Sources of Irrigation 133 14.3 Cropping Pattern 134 14.4 Hybrid/HYV and Non-hybrid Varieties of Cotton in Gujarat 134 14.5 Profile of Cotton Varieties Grown in Gujarat 137
xü Contents 14.6 Cotton Scenario in Gujarat 139 14.6.1 District-Wise Cotton Area in Gujarat 140 14.6.2 District-Wise Cotton Production in Gujarat 142 14.6.3 District-Wise Lint Cotton Yield in Gujarat 144 14.6.4 District-Wise Cotton Yield in Irrigated and Unirrigated Area and Coverage of Irrigation 145 14.6.5 District-Wise Sales of Approved Bt Cotton Seeds in Gujarat Düring 2004-2005 145 14.7 Minimum Support Prices and Annual Average Market Prices of Cotton 148 15 Sampling and Methodology 151 15.1 Sample Design 151 15.1.1 Selection of Districts 151 15.1.2 Selection of Sample Tehsils 151 15.1.3 Selection of Sample Villages 152 15.1.4 Selection of Sample Farmers 152 15.1.5 Method of Primary Data Collection 153 15.1.6 Secondary Data Collection 154 15.1.7 Analytical Framework 154 15.1.8 Reference Year 154 16 Nature and Performance of Bt Cotton vs. Non-Bt Cotton in Gujarat 155 16.1 Introduction 155 16.2 Cropping Pattern 155 16.3 Area Under Cotton 157 16.4 Cotton Varieties Used by the Sample Households 157 16.5 Average Cost of Seed Used 159 16.6 Application of Pesticides 160 17 Economics of Bt Cotton vs. Non-Bt Cotton in Gujarat 165 17.1 Introduction 165 17.2 Average Bt and Non-Bt Cotton Yields 165 17.2.1 Picking-Wise Break-Up of Productivity and Maturity Period of Bt and Non-Bt Cotton 168 17.3 Cost of Production, Value of Output and Profit 168 17.3.1 Percentage Share of Inputs in Gross Cost of Cultivation 170 17.3.2 Average Cost of Production of Bt and Non-Bt Cotton 173 17.3.3 Average Price Realization and Revenue Differentials 173 17.3.4 Average Net Profit per Hectare for Bt and Non-Bt Cotton 174
Contents xiii 17.4 Econometric Analysis of the Performance of Bt Cotton vs. Non-Bt Cotton 177 17.4.1 Output-Input Value Ratio for Bt and Non-Bt Cotton 177 17.4.2 Regression Analysis 177 18 Farmers' Perceptions on Various Features of Bt Cotton in Gujarat 179 18.1 Some Basic Features of Bt Cotton: Views of Bt Cotton Sample Farmer Households 179 18.2 Farmers' Perception on Advantages or Disadvantages of Bt Cotton vis-ä-vis Non-Bt Cotton 180 18.3 Measures Suggested by Sample Farmers to Improve the Acceptance of Bt Cotton 181 18.3.1 Farmers' Perception on Environmental Impact of Bt Cotton 181 Part V State Study 3: Maharashtra 19 Cotton Cultivation in Maharashtra 185 19.1 Cotton Cultivation in the Selected Districts 185 20 Sampling and Methodology 191 20.1 Sampling Design 191 20.1.1 Age, Education and Experience in Cotton Cultivation 193 20.1.2 Farm Size and Irrigation 193 20.1.3 Sources of Irrigation 194 20.1.4 Access to Market for Cotton 194 21 Nature and Performance of Bt Cotton vs. Non-Bt Cotton in Maharashtra 197 21.1 Introduction 197 21.2 Cropping Pattern 197 21.3 Area Under Cotton 198 21.4 Cotton Varieties Used by the Sample Households 199 21.5 Average Cost of Seeds Used 200 21.6 Application of Pesticides 201 21.7 Pesticide Use 202 22 Economics of Bt Cotton vs. Non-Bt Cotton in Maharashtra 203 22.1 Introduction 203 22.2 Average Bt and Non-Bt Cotton Yields 203 22.3 Cost of Production, Value of Output and Profit 205 22.3.1 Share of Various Inputs in Total Cost of Production 206 22.3.2 Value of Output and Net Profit 206
xiv Contents 22.4 Econometric Analysis of the Performance of Bt Cotton vs. Non-Bt Cotton 213 22.4.1 Econometric Analysis of the Determinants of Yield, Value of Output and Profit 214 23 Farmers' Perceptions on Various Features of Bt Cotton in Maharashtra 217 23.1 Some Basic Features of Bt Cotton: Views of Bt Cotton Sample Farmer Households 217 23.1.1 Adoption of Bt Cotton: Some Determining Factors 217 23.1.2 Agronomie Features of Bt Cotton: Response of Bt Growers 219 23.2 Farmers' Perception on Advantages or Disadvantages of Bt Cotton vis-ä-vis Non-Bt Cotton 220 23.3 Measures Suggested by Sample Farmers to Improve the Acceptance of Bt Cotton 220 Part VI State Study 4: Tamil Nadu 24 Cotton Cultivation in Tamil Nadu 225 24.1 Area Under Cotton in Tamil Nadu 225 24.2 Production of Cotton 225 24.3 Productivity of Cotton 226 24.4 Growth Rates of Cotton in Tamil Nadu 226 24.5 Decomposition of Change of Output 226 24.6 District Wise Number of Textile Mills and Their Approximate Lint 228 24.7 Varieties of Cotton Used in Tamil Nadu Mills 228 25 Sampling and Methodology 229 25.1 Sampling Design 229 25.1.1 District Selection 229 25.1.2 Selection of Villages 229 25.1.3 Selection of Samples 230 25.1.4 Area Under Cotton in Salem District 230 25.1.5 Production of Cotton in Salem District 231 25.1.6 Yield of Cotton in Salem District 231 25.1.7 Area Under Cotton in Perambalur District 231 25.1.8 Production of Cotton in Perambalur District 232 25.1.9 Yield of Cotton in Perambalur District 232 25.1.10 Statistical Tools Used 232 25.1.11 Scope of the Study 232 25.1.12 Limitation 232
Contents xv 26 Nature and Performance of Bt Cotton vs. Non-Bt Cotton in Tamil Nadu 233 26.1 Introduction 233 26.2 Cropping Pattern 233 26.2.1 Bt Cotton Growers 233 26.2.2 Non Bt Cotton Growers 234 26.3 Area Under Cotton 235 26.3.1 Area Under Cotton Per Farm 236 26.4 Cotton Varieties Used by the Sample Households 237 26.4.1 Relative Preference Among Different Varieties 237 26.5 Average Cost of Seed Used 239 26.5.1 Seed Rate of Bt Cotton vis-ä-vis Non Bt Cotton 241 26.6 Application of Pesticides 241 26.6.1 Rating on Insect or Pest Attack on Cotton 241 26.6.2 Pesticides Spraying 243 27 Economics of Bt Cotton vs. Non-Bt Cotton in Tamil Nadu 247 27.1 Introduction 247 27.2 Average Bt and Non-Bt Cotton Yields 247 27.3 Cost of Production, Value of Output and Profit 250 27.3.1 Overall Cost of Cultivation 250 27.3.2 Bt Cotton Irrigated 250 27.3.3 Bt Cotton: Unirrigated 250 27.3.4 Non Bt Cotton Irrigated 253 27.3.5 Non Bt Cotton Unirrigated 254 27.3.6 Value of Output 254 27.3.7 Netlncome 254 27.4 Econometric Analysis of the Performance of Bt Cotton vs. Non-Bt Cotton 255 27.4.1 Students''t'Test 255 28 Farmers' Perceptions on Various Features of Bt Cotton in Tamil Nadu 257 28.1 Some Basic Features of Bt Cotton: Views of Bt Cotton Sample Farmer Households 257 28.2 Experience of Sample Farms in the Bt Cotton Cultivation 258 28.2.1 Agency/Person Recommended for Growing Bt Cotton 258 28.2.2 Roll of Private Agencies 259 28.3 Agronomie Features of Bt Cotton: Response of Bt Growers 259 28.3.1 Flowering of Bt Cotton 259 28.3.2 Plant and Boll Size, Number of Picking of Bt Cotton as Compared to Non Bt Cotton as Reported by Bt Cotton Growers 260
xvi Contents 28.4 Farmers' Perception on Advantages or Disadvantages of Bt Cotton vis-ä-vis Non-Bt Cotton 261 28.4.1 Willingness/Non Willingness to Continue with Bt Cotton 263 28.4.2 Direct or Indirect Impact of Bt Cotton Technology on the Economic Development 264 28.5 Measures Suggested by Sample Farmers to Improve the Acceptance of Bt Cotton 265 28.6 Impact of Bt Cotton Cultivation on Environment 266 Bibliography 267 Index 269