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Potential Benefits of Bt Brinjal in India — An Economic Assessment

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  • Kumar, Sant
  • Lakshmi Prasanna, P.A.
  • Wankhade, Shwetal

Abstract

The potential economic benefits of Bt brinjal hybrids in terms of yield gain, reduction in insecticide-use, and increase in net returns per hectare have been reported in this study. Results have shown that adoption of Bt brinjal hybrids would provide yield gain of 37 per cent and reduction in total insecticide-use of about 42 per cent over non-Bt hybrids. Other benefits like increase in additional brinjal production (30 thousand tonnes), savings from insecticides (` 47 crore) against Fruit and Shoot Borer (FSB), increase in net returns (` 11029/ha), and reduction in price of brinjal output (3%), etc. would be at 15 per cent adoption level. With increased adoption level of 60 per cent of Bt brinjal hybrids would provide, additional production of 119 thousand tonnes, savings from insecticides against FSB Rs 187 crore, increase in net returns ` 44117/ha and likely reduction in brinjal price by 15 per cent. Simulation of gains adopting Bt brinjal hybrids has shown that country may gain aggregate direct economic benefits between ` 577 crore and ` 2387 crore annually at 15 per cent and 60 per cent adoption levels of bt brinjal hybrids, respectively. The major gains will accrue to consumers (66% of total) and rest would go to the farmers. In brief, Bt brinjal offers a large scope to increase income of farmers, reduce its cost to consumers, improve food safety and reduce health hazards and environmental pollution. The results of study may be helpful in policy decision on Bt brinjal adoption in the context of smallholders agriculture.

Suggested Citation

  • Kumar, Sant & Lakshmi Prasanna, P.A. & Wankhade, Shwetal, 2011. "Potential Benefits of Bt Brinjal in India — An Economic Assessment," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(1).
  • Handle: RePEc:ags:aerrae:109420
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    File URL: http://purl.umn.edu/109420
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    References listed on IDEAS

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    1. Matin Qaim & Greg Traxler, 2005. "Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 73-86, January.
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    More about this item

    Keywords

    GM food crop; Bt brinjal hybrid; Fruit and shoot borer; Economic benefits; Agricultural and Food Policy; Q11; Q16; Q15;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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