Bt Cotton

India

While the data is not as comprehensive in India as is the case in countries where the products are already grown on a large hectarage post-commercialization stage, there are some noteworthy trends apparent from the field trial data. For India, two sets of data were used to estimate the overall economic advantage of cotton; the first was a field trial data set for 1998/99 and 2000/01 from the Department of Biotechnology analyzed by Naik (2001) and the second was an ICAR field trial data set for 2001 (ICAR 2002). The data set of Naik (2001) indicates that the overall economic advantage of Bt cotton in 1998/99 was $236 per hectare, equivalent to about 77% gain, compared with conventional cotton. The corresponding figure for the atypical trials of 2000/01, which were planted late, was $76/hectare equivalent to a 25% advantage over conventional cotton; the lower returns in 2001 were entirely due to the lower yield from the later planting, with savings from insecticides being similar ($45 versus $42/hectare) to 1998/99. It is noteworthy that the economic advantage from the yield increases associated with Bt cotton in India is relatively much greater than the cost advantage related to pesticide savings. Thus, in 1998/99 the cost advantage associated with increased yield was $241/hectare compared with $45 from insecticides. This is reflected in the 79% economic advantage for yield with Bt cotton compared with a corresponding 15% for insecticides in 1998/99. Comparing Bt cotton with farmer practice, as opposed to control plots of conventional cotton in field experiments, the overall economic advantage of Bt cotton in 1998/99 was estimated to be in the range of $255 to $278/hectare, which is at the lower end of the corresponding estimates for China, which range from $350 to $500 per hectare.

Naik (2001) also explored the effect of a hypothetical 11% and 17% drop in the international price of cotton in the event that Bt cotton production would increase supply and reduce prices. Under the most pessimistic price scenario of a maximum 17% decrease in cotton prices, the benefits of Bt cotton over farm practices would be reduced in 1998/99 from ($255 to $278/hectare) to ($185 to $230), which still provides handsome returns to Bt cotton farmers.

Based on the ICAR data set from large scale field trials in 2001, the economic advantages for three Bt hybrids were relatively high due to severe pest infestations. The overall economic advantages for the three Bt hybrids ranged from $96/hectare, (a 29% increase compared to conventional cotton) to $210/hectare (86% increase over conventional cotton). The magnitude of the economic advantage is of the same order as the 1998/99 data set analyzed by Naik, 2001 ($236/hectare). The data for the 2001 ICAR trials are also consistent with the 1998/99 Department of Biotechnology data set in that the major contribution to economic advantage is due to yield advantage, as opposed to insecticide product and labor reduction costs. However, the benefits in terms of farming practice can be expected to reflect a higher contribution from insecticide savings, because of the high number of prophylactic sprays applied by farmers.

In summary, the results of field experiments in India indicate that, with typical high insect pest infestations, the overall economic benefits from commercial Bt cotton are likely to be high, ranging from $75 to $200/hectare or more. The first commercial plantings of approximately 45,000 hectares were planted in India in 2002.

Summary topics:

• Agronomic Benefits
• Environmental Benefits
  • Reduction in use of cotton insecticides
  • Less insecticides in aquifers and the environment
  • Farmer exposure to insecticide and health implications
  • Reduced production risks and enhanced opportunities to grow Bt cotton
  • Increased populations of beneficial insects
  • Reduced risk for wildlife
  • Reduced fuel and raw material consumption, and pollution
• Social benefits
  • Social implications of saving water by reducing number of insecticide sprays
• Economic benefits
  • China
  • USA
  • Others
  • Distribution of economic surplus to Bt cotton stakeholders

Related topics:

• The cotton crop
• Global distribution of cotton in developing and industrial countries, by area, production, consumption, imports, and exports
• Number of cotton farmers worldwide and size of farms
• Insect pests of cotton
• Crop losses due to insect pests of cotton and the cost of control
• Global insecticide usage on cotton
• The use of Bt genes in cotton
• Assessment of environmental risk and Insect Resistance Management (IRM) strategies
• Global adoption of Bt cotton
• Bt cotton experience to date
• Summary: Agronomic, Environmental, Social and Economic Benefits
• Future global potential for Bt cotton: opportunities and challenges
• Highlights

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