PANDIT JAWAHARLAL NEHRU COLLEGE OF

AGRICULTURAL AND RESEARCH

KARAIKAL-609603

Department of Agricultural Economics and Extension

Program of Research Work

KOELADINNE ASWINI
16PGA102
 Advisory committee
Chairman :Dr .N. SWAMINATHAN Ph.D.,
Assistant Professor
Department of Agricultural Economics and Extension
Member 1 Dr. A.POUCHEPPARADJOU Ph.D.,
Professor.
Department of Agricultural Economics and Extension
Member 2 Mr. K. C. AYYOOB M.sc.,
Assistant Professor
Department of Agricultural Economics and Extension
 Research topic

An Economic Analysis of Productivity and

Profitability Impact of Bt Cotton in Anatapur

district of Andhra Pradesh

 Outline
• Introduction.
• Objectives.
• Review of literature.
• Study area.
• Tools of analysis.
• Semester wise breakup of work.
 Introduction
• Cotton (Gossipum spp.) the ‘White Gold’ and ‘King of Fibers’

• Cotton is a major cash crop grown in India.

• India ranks at 2nd position among all cotton producing countries in the
world.

• Cotton is grown chiefly for its fiber used in the textiles industries and it
is also used for several other purposes like making threads for mixing in
other fibers, oil extraction from cotton seeds, crushed seeds for animal
feed, lint for religious purpose etc.
 Area, production and productivity of
cotton in India
Year Area in lakh Production in lakh Yield kgs per
hectares bales of 170kgs hectare

2014-15 128.46 386 511

2015-16* 118.77 338 484

2016-17* 105.00 351 568

* Source :Cotton Advisory Board (CAB)

• Gujarat, Maharashtra, Karnataka, Telangana, Andhra Pradesh these
are five producing states in India.

• The export of cotton from India during 2014-2015 was 57.72 lakh
bales and in value terms Rs.9499.87.

• India is second largest cotton exporting country.

Source: As per International Cotton Advisory Committee (ICAC) report

for the month of March 2017,The Cotton Corporation of India Ltd.
 Area, production and productivity of
cotton - State wise
Area in lakh hectare ,Prod in lakh bales 170 kgs, Yield kgs per hect

Year 2014-2015 2015-2016 (P*) 2016-2017 (P*)

State Area Prod Yield Area Prod Yield Area Prod Yield
Gujarat 27.73 10.8 662 27.19 94.00 588 24.00 95.00 673
Maharashtra 41.90 78.00 316 38.27 75.00 333 38.06 89.00 398

Karnataka 8.75 31.5 612 6.33 20.00 537 4.64 21.00 769

Telangana - - - 17.13 57.00 566 17.78 59.50 569

Andhra 8.21 27 559 6.66 24.00 613 4.49 19.00 719

Pradesh
Source :Cotton Advisory Board (CAB) (P*)-Provisional
 Bt cotton
• Bt cotton is a genetically modified organism (GMO) cotton crop,
which produces an insecticide to bollworm. It is produced by
Monsanto.

• Bt cotton was approved by the Chinese government in 1997.

• It contains a foreign gene obtained from Bacillus thuringiensis, a

natural enemy to boll worms.

• In 2002, a joint venture between Monsanto and Mahyco introduced Bt

cotton to India.
 Performance of Bt. and non Bt. cotton
coverage-State wise
State 2014-2015 2015-2016 2016-2017
Area in lakh Ha
Bt Non-Bt Total Bt Non-Bt Total Bt Non- Total
Bt
Gujarat 27.13 0.60 27.73 26.23 0.96 27.19 19.24 4.76 24.00

Maharashtra 40.10 1.80 41.90 34.40 3.87 38.27 32.30 5.79 38.06

Karnataka 6.97 1.78 8.75 4.87 1.46 6.33 2.85 1.79 4.64

Telangana 16.08 1.05 17.13 16.61 1.12 17.73 12.27 0.23 12.50

Andhra 8.00 0.21 8.21 6.50 0.16 6.66 4.38 0.11 4.49
Pradesh
Source : Status Paper of Indian Cotton
• The total area of cotton during 2014-2015 is 128.19lakh hectare.

• Andhra Pradesh accounts for 8.21 lakh hectare out of 8.21 lakh
hectare, Bt cotton accounts for 8.0 lakh hectare and non-Bt cotton
accounts for 0.21 lakh per hectare.

• source-cotton advisory board

 Objectives

 To analyze the growth in area, production and productivity of Bt cotton in

Anatapur district of Andhra Pradesh.

 To estimate cost of cultivation of Bt cotton and non-Bt cotton in selected

sample farms.

 To estimate the net returns for Bt cotton and non- Bt cotton in selected
sample farms.
 To examine the production variability in Bt cotton and non – Bt
cotton.

 To assess the resource use efficiency in Bt cotton vis-à-vis non Bt

cotton cultivation.

 To find out the impact of Bt cotton cultivation on cost of pesticides,

cost of production and profitability across different farm size groups.
 REVIEW OF LITERATURE
• Qaim and Zilberman (2003) reported the results of data from three
Mahyco Bt. hybrids along with their counterparts and a local check
grown on 157 farms in 25 districts of Maharashtra, Madhya Pradesh and
Tamil Nadu. On an average, Bt. hybrids required three times less sprays
to control bollworm than non-Bt hybrids and local checks .The number
of sprays against the sucking pests was same among the three.
Insecticides sprayed on Bt. cotton were lower by about 70 per cent both
in terms of commercial products and active ingredients.
• Sahai,S. and Rahman, S. (2003) conducted 100 transgenic and non-Bt farms
surveys in Andhra Pradesh (75) and Maharashtra (25) for two Bt cotton
varieties MECH-162 and MECH-184 and two non- Bt cotton varieties, Banny
and Bhrama .The results of the study revealed that Bt showed premature
falling, low quality ,higher cost and low price of final product. 98 percent of
surveyed farmers were against Bt cotton. They reported that cost of Bt cotton
seeds was four times higher than non Bt cotton and Bt cotton had smaller boll
size, shorter fiber length and poorer cotton quality leading to low market
demand and lower yield which resulted in overall loss of income for those
farmers who have cultivated the Monsanto cotton.
• Bennett et al. (2004) have reported that the number of sprays required for
the control of sucking pests was same for Bt and non-Bt cottons, but the
number of sprays required for bollworm control was much lower for Bt-
cotton, leading to reduction in the expenditure by 72 per cent in 2002.
They found that Bt cotton varieties have a significant positive impact on
average yields and on the economic performance of cotton growers.
• Narayanamoorthy and Kalamkar (2006) conducted a study on Bt. cotton
cultivation. Using the data collected from 150 sample farmers from two
districts in Maharashtra. The result revealed that profit realized from Bt.
cotton crop is substantially higher than that of the non-Bt cotton crop.
While the average profit of the two districts comes to about Rs.31,880/ha
for Bt. cotton, it is only about Rs.17,790/ha for non-Bt. cotton crop,
indicating a difference of about Rs.14,090/ha. The profit realized by Bt.
cotton growers is nearly 80 per cent higher than that of non-Bt. cotton
cultivators.
• Gandhi and Namboodiri (2006) surveyed 694 cotton growing farmers
from Gujarat, Maharashtra, Andhra Pradesh and Tamil Nadu. The yields
of Bt. cotton were significantly higher than that of non-Bt. cotton under
both irrigated and non-irrigated conditions. The profit from Bt cotton
cultivation ranged from Rs.15,247 to Rs.32,065/ha while that from non-
Bt. cotton ranged from Rs.5,426 to Rs.18,244/ha. The farmers perceived
advantages of Bt. cotton with respect to pest incidence, pesticide need,
cotton yield, quality and profitability.
• Vitale and Boyer (2007) reported that an economic model was
developed to predict the economic impacts to consumers and
producers from the introduction of Bt crops in the small holder
cotton. The analysis concluded that the introduction of Bt cotton
increase the income levels of the Bt cotton growers.
• Hina et al. (2010) studied economics of cotton production in Pakistan using

secondary data. The Cobb Douglas production function was used to study the

impact of individual input on total return. The study revealed that the input cost

has increased over time. The cost of seed, irrigation and inter-culture had shown

significant relation with total return. The negative return indicated that the cost

of inputs have increased at increasing rate. The highest (8.89%) input cost

growth rate was observed in case of plant protection. Whereas the lowest cost

growth rate was found in case of seed. The major share (28.53 percent) in the

total cost of production was that of land rent and minimum was that of seed

(2.13 percent ).
• Dodamani et al. (2010) studied financial viability of cotton growers
in northern Karnataka. Results revealed that major reason for non-
repayment of loan by small farmers included crop failure (68%)
drought, pest and disease problem, followed by low market price
(45%). In the case of big farmers, the major reason was crop failure
(52%) followed by low price (35%).
• Kiresur and Manjunath (2011) studied socio economic impact of Bt-
cotton in Karnataka. They used primary data for the study collected from
60 farmers using multistage random sampling method.

• The data were processed using tubular analysis, production function,

decomposition analysis and logit model. The study revealed that non
availability of quality Bt-seeds was most important constraint hindering
adoption of Bt-cotton production technology, as opined by nearly 80 per
cent of farmers.
 Study area
• The study will be conducted in Anatapur district of Andhra Pradesh.

• Cotton is major cash crop cultivated in Andhra Pradesh.

• In Anatapur district cotton is occupied 3rd rank in area and production

after Paddy and Groundnut.

• Major irrigation through canal and bore wells.

• Total area under cotton cultivation – 4,338 ha

• Source- Statistical Abstract (2012-2013)

 Sampling Design

• Multi-stage random Sampling Technique

• 3 mandals – 2 villages from each mandal.

• Sample size - 120 farmers.

 TOOLS OF ANALYSIS
• The Cobb-Douglas type of production function will be used to study the

effect of various inputs on Bt-cotton output. It being a homogenous

function provided a scale factor enabling to measure the returns to scale.

• The relationship between inputs (or, more accurately, expenditure on

inputs) and yield will be explored by estimating frontier production

function for Bt cotton production in the region.

• To study resource productivity and allocative efficiency in Bt and

non-Bt cotton production, Cobb-Douglas type of production function

will be fitted.
 Technical Programme Semester wise

II YEAR - I Semester: Credit (0+10)

• Finalization of research problem and objectives
• Collection of literature
• Methodology finalization
• Interview schedule preparation and Pre-testing
• Initiation of Primary data collection
II YEAR - II Semester: Credit (0+10)
• Collection and Tabulation of data
• Statistical analysis
• Writing and submission of thesis.
Thank you