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PPP Special 08 - Institut für Entwicklungs- und Agrarökonomik

PPP Special 08 - Institut für Entwicklungs- und Agrarökonomik

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7<br />

1.4 Objectives of this study<br />

The overall objective of this study was to compare the economic<br />

performance of Bt cotton and non-Bt cotton in farmers’ fields in selected<br />

areas in Karnataka, South India.<br />

These results are accompanied by an overview of cotton production and<br />

the current status of Bt cotton production in India. Finally, this report will<br />

give a first assessment on the performance of Bt cotton during its first<br />

commercial season in Karnataka.<br />

The specific objectives were:<br />

1. Assessment of the traits of cotton production in South India.<br />

2. The economic evaluation of Bt varieties <strong>und</strong>er the specific<br />

conditions of South India.<br />

3. Development of recommendations for further studies.<br />

Another study that looked at yield effects of Bt versus conventional<br />

cotton varieties in India was carried out by Quaim and Zilberman (2003).<br />

The authors used data of Mahyco / Monsanto on-farm trials with Bt<br />

cotton, a non-Bt counterpart and conventional cotton. They concluded<br />

that crop loss and pesticide use can be much reduced if farmers plant<br />

Bt cotton. However, the authors did not perform any economic analysis<br />

by calculating gross margins.<br />

Hence, there is a need to conduct an economic analysis before<br />

concluding on the net benefits of Bt cotton to farmers.

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