Increasing Farm Prosperity with Innovation

Study: India




Studies have reported that biotech insect-resistant cotton farmers in India earned higher profits than nonbiotech farmers.

A study by IMRB International compared key economic indicators among Indian farmers growing biotech insect-resistant cotton with those growing nonbiotech cotton.30 The study concluded that biotech insect-resistant cotton farmers in India earned higher profits than nonbiotech farmers, as a result of the higher yields and lower production costs of biotech cotton. Farmers who planted Bollgard and Bollgard II cotton in 2006 earned on average an additional 7,757 rupees ($196) an acre. This increase was attributed to a more than 50 percent higher average yield for insect-resistant cotton than for conventional cotton. Bollgard II farmers reported the highest yield, 1,138 kilograms an acre; Bollgard farmers reported 1,033 kilograms an acre.

In addition, farmers’ expenses for inputs were reduced with biotech cotton. Bollgard farmers spent an average of $18 an acre for insecticide to control bollworm, the major pest in cotton. Farmers of conventional cotton spent an average of $40 an acre.

Sitaram Madhavrao Solate is one farmer who has benefited by planting Bollgard cotton. He has grown cotton on his farm in the Aurangabad district of Maharashtra state for many years. He began growing Bollgard in 2004. Before planting Bollgard, 2003 yield on his four acres of cotton was 900 kilograms per acre, with a net profit of 28,000 rupees ($715), or 7,000 rupees per acre ($178). Since he switched to Bollgard, his yield and net profit have risen significantly. He has been able to purchase farm equipment, a color television, and additional land for cotton production.

He now plants cotton on 20 acres. In 2006, he produced 1,400 kilograms per acre. He had a profit of 392,000 rupees ($9,974), or 19,600 rupees an acre ($499).

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