Estimating the Effect of Bt Cotton on Input Expenditure and Yield: An Indian Perspective

Abstract

Though it is almost two decades since it was first introduced for commercial cultivation, the scientific community seems not to have reached a consensus yet on the success or failure of Bt cotton in India. In this context, we attempt to find out the effects of Bt on input use and yield in cotton crop using a panel data for 21 years from the nine major cotton-growing states of the country. The results suggested higher yield and lesser input expenditure due to the adoption of Bt cotton. Though the short-run economic benefits due to Bt cotton is well documented in the literature, our finding that the Bt cotton has a beneficial effect even after 18 years of its commercialisation in the country gives reason for remaining optimistic about this technology at least in the near future.