The Hindu Business Line : `Farmers gaining more from growing Bt cotton''

Key findings
The physical yield obtained in Bt cotton was 9.49 quintals an acre as against 7.21 quintals in non-Bt cotton.
The official Bt cotton yielded 24 per cent more than unofficial version.

Hyderabad , Jan. 4

Amidst arguments and counter arguments over the efficacy of Bt cotton in the country, a study undertaken by the Centre for Economic and Social Studies (CESS) has found that the bio-engineered seeds have helped cotton farmers in all social groups through increased yields and net returns. Besides, it proved to be a trigger in generating more employment.

The study, conducted during 2004-05 kharif season, was taken up in four districts of Warangal, Nalgonda, Guntur and Kurnool, representing the four agro-climatic zones and covering 14 villages in nine mandals of Andhra Pradesh. The sample size was 623. The proportion of adopters (to Bt) and non-adopters was about 70 per cent and 30 per cent.

"The main objective of the study was to assess the impact of Bt cotton cultivation on cost of pesticides, cost of production and profitability across the farmers. It also aimed at finding out impact of Bt cotton on employment," said Dr N. Chandrasekhara Rao, who conducted the study along with Prof Mahendra Dev.

The Bt farmers hired more labour than their non-Bt peers. The increase was put at Rs 303. "The increase in employment opportunities due to the new Bt technology is a big gain for the rural economy as a whole," it observed.

The physical yield obtained in Bt cotton was 9.49 quintals an acre as against 7.21 quintals in non-Bt cotton, an increase of 32 per cent. The increase could be attributed to the lower bollworm damage in Bt.

The higher yield in Bt showed that the per quintal costs were lower over non-Bt, though the absolute costs were higher.

The findings also suggested that the performance of Bt cotton might be hindered by agro-ecological conditions, as the low performing districts of Kurnool and Nalgonda, which receive lower amount of rainfall. Also, cotton area under irrigation was less in these districts.

Interestingly, both the yields and subsequent returns showed a significant difference between farmers belonging to the upper and lower strata of society. The quantum of yields and returns differed, though.

The Bt farmers from scheduled castes registered 10 per cent lesser yield than their counterparts from other castes, with a two per cent lower cost of production. The SC farmers incurred nine per cent higher cost per quintal than OC farmers, as their yield was lower. Interestingly, SC farmers, who went for Bt cotton, fared well over SC farmers that sowed non-Bt seeds.

The official Bt cotton or approved varieties yielded 24 per cent more than unofficial version. But the cost of production in official Bt was higher by 37 per cent than the unofficial one.

Net result

Though the farmers continued to register negative net income, Bt cotton fared better. (Net income is counted by deducting all expenditure such as rent, family labour, hired labour and interest rates from gross income.)

While the per acre net income for Bt farmers stood at - Rs 363, the figure for non-Bt farmers was put at - Rs 2,169.

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