State and market interaction: cotton variety and seed market development in China
AbstractChina is ranking first in cotton production for more than 20 years. The adoption of GM cotton, since 1997, through the marketing of many varieties, has enabled it to maintain its rank by overcoming the pest resistance to insecticide. The varietal contribution has resulted from a radical change in the legal framework to enhance the variety and seed markets. Nevertheless, today, all cotton sector stakeholders do recognize that there is a big issue of excessive competition from a great number of varieties leading to variety and seed mixture. This situation has led the Chinese Government to decide on a new support policy called "quality seed subsidy policy". The Chinese policy in the areas of varieties and seeds hence is providing an interesting case of interaction between policy and market within less than twenty years.Our paper is a contribution to analyse the cotton variety and seed market development of the last twenty years by focussing on the interaction between State intervention and market. A change in the cotton policy, consisting of liberalizing the variety and seed markets, could prove to be quite successful where the capacities for breeding and investment exist prior to the policy change. This success nevertheless will remain a short term one if no regulation is provided to prevent the market development from excessive and unfair competition. The case analysed is a good illustration of the shortfalls of unregulated competition. It is however ineffective to regulate by imposing what farmers should use. Such a direct intervention in the market is showing undesired effects on the viability of seed companies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00324379.
Date of creation: 14 May 2008
Date of revision:
Publication status: Published - Presented, ISSCRI International Conference "Rationales and evolutions of cotton policies", Montpellier, May 13-17, 2008, 2008, Montpellier, France
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00324379/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
China; cotton; Bt; seed market; property right; variety; regulation; competition;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.