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Diffusion of Bt Cotton in India: Impact of Seed Prices and Varietal Approval


  • Anchal Arora
  • Sangeeta Bansal


The Indian government imposed a ceiling on the price of Bt cotton seeds in 2006. This paper aims to analyze the effect of such price intervention on the diffusion of Bt cotton in India. Using three variations of dynamic logistic models, diffusion paths in nine major cotton growing states from 2002 to 2008 are studied. It was found that although seed prices were significant in impacting the diffusion rates, the effect was limited. It was also found that varietal approval is an important factor affecting diffusion rates. Copyright 2012, Oxford University Press.

Suggested Citation

  • Anchal Arora & Sangeeta Bansal, 2012. "Diffusion of Bt Cotton in India: Impact of Seed Prices and Varietal Approval," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(1), pages 102-118.
  • Handle: RePEc:oup:apecpp:v:34:y:2012:i:1:p:102-118

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    Cited by:

    1. ARORA, Anchal, 2014. "Pricing Of Bt Cotton Seeds In India: The Debate Behind," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra Provider-Homepage:;Association of Agricultural Economists in Slovakia (APES), vol. 17(2).
    2. Rousselière, Samira & Rousselière, Damien & Ramani, Shyama, 2016. "Innovation Led Alliances: Theory and application to the GM Plant Industry," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235711, Agricultural and Applied Economics Association.
    3. Sarthak Gaurav & Srijit Mishra, 2012. "To Bt or not to Bt? Risk and uncertainty considerations in technology assessment," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-001, Indira Gandhi Institute of Development Research, Mumbai, India.

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