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Emerging Markets for GM Foods: A Study of Consumer's Willingness to Pay in India

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  • Deodhar, Satish Y.
  • Ganesh, Sankar
  • Chern, Wen S.

Abstract

A random utility approach is used to estimate logit equations which indicate what factors affect the likelihood of consumption of non-GM and GM foods, and, whether or not consumers are willing to pay a premium for non-GM/GM foods. Ceteris paribus as the price difference between non-GM and GM food rose, people were more likely to consume GM foods. Likelihood of GM food consumption was higher in the middle income brackets. Consumers were willing to pay an expected premium of 19.5% and 16.12% for golden rice and GM edible oil respectively. In case of chicken, consumers seemed to pay a very negligible premium for non-GM fed chicken. Overall, it appears that GM foods may be acceptable in the Indian market. However, basic awareness about the GM foods may have to be created among the consumers through government ministries, consumer interest groups, and biotech food-crop companies.

Suggested Citation

  • Deodhar, Satish Y. & Ganesh, Sankar & Chern, Wen S., 2008. "Emerging Markets for GM Foods: A Study of Consumer's Willingness to Pay in India," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6348, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea08:6348
    DOI: 10.22004/ag.econ.6348
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    References listed on IDEAS

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    1. Sallie James & Michael Burton, 2003. "Consumer preferences for GM food and other attributes of the food system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 501-518, December.
    2. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(3), pages 701-719, December.
    3. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-19, December.
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    Cited by:

    1. Saito, Yoko & Aizaki, Hideo & Saito, Hisamitsu & Kondo, Takumi & Yamamoto, Yasutaka, 2015. "Demand for a Transgenic Good with Nutritional, Medical, and Environmental Qualities," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205455, Agricultural and Applied Economics Association.
    2. Satish Y Deodhar, 2015. "Make in India: Re-chanting the Mantra with a Difference," Working Papers id:6593, eSocialSciences.
    3. Deodhar, Satish Y., 2015. "Make in India: Re-chanting the Mantra with a Difference," IIMA Working Papers WP2015-02-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Bansal, Sangeeta & Gruère, Guillaume P., 2012. "Implications of mandatory labeling of GM food in India: Evidence from the supply side," Food Policy, Elsevier, vol. 37(4), pages 467-472.
    5. Shew, Aaron M. & Nalley, Lawton L. & Danforth, Diana M. & Dixon, Bruce L. & Nayga, Rodolpho M. Jr & Delwaide, Anne-Cecile, 2015. "Are all GMO’s the same? Consumer acceptance of cisgenic rice in India," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204869, Agricultural and Applied Economics Association.
    6. Saito, Yoko & Saito, Hisamitsu, 2015. "Demand for a Transgenic Food with a Medical Benefit," MPRA Paper 67945, University Library of Munich, Germany.
    7. Amrita Chatterjee & Sanjib Pohit & Arpita Ghose, 2016. "Trade and Distributional Impacts of Genetically Modified Crops in India: A CGE Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(3), pages 381-407, August.
    8. Daniela Covino & Flavio Boccia, 2016. "Potentialities of new agri-biotechnology for sustainable nutrition," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2016(2), pages 97-106.
    9. Shew, Aaron M. & Nalley, Lawton L., 2015. "Indian Acceptance of Cisgenic Rice: Are all GMOs the same?," GMCC-15: Seventh GMCC, November 17-20, 2015, Amsterdam, the Netherlands 211492, International Conference on Coexistence between Genetically Modified (GM) and non-GM based Agricultural Supply Chains (GMCC).

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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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