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Economic Performance of Bt Cotton Varieties in Pakistan

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  • Nazli, Hina
  • Sarker, Rakhal
  • Meilke, Karl D.
  • Orden, David

Abstract

Farmers in Pakistan have been growing cotton that contains the first generation of Bt gene since 2002. The cultivation of these varieties, although formally unapproved and unregulated, increased rapidly after 2005. In 2007, nearly 60 percent of the cotton area was under BT varieties. This paper examines the economic performance of Bt cotton in Pakistan based on data collected through a structured questionnaire survey in January-February 2009 in two districts (Bahawalpur and Mirpur Khas). The extent of the impact of Bt cotton on costs of production and yield gains are different across the two districts with their diverse agro-climatic conditions and pest pressures. Seed expenditures increase in both districts, but a decline in the number of bollworm sprays and hence in the expenditure for pesticides is observed and total pesticide control costs (for bollworms and non bollworm pests) declines in both districts. Total production costs decline in Bahawalpur but rise in Mirpur Khas. The yield increases are higher in Mirpur Khas as well, resulting in total revenue and gross margins improving more than in Bahawalpur. The results are similar to other studies of Bt cotton in India and suggest gains for Pakistan from progressing to a regulated national market for Bt cotton technologies.

Suggested Citation

  • Nazli, Hina & Sarker, Rakhal & Meilke, Karl D. & Orden, David, 2010. "Economic Performance of Bt Cotton Varieties in Pakistan," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61181, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61181
    DOI: 10.22004/ag.econ.61181
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    References listed on IDEAS

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    1. Gandhi, Vasant P. & Namboodiri N V, 2006. "The Adoption and Economics of Bt Cotton in India: Preliminary Results from a Study," IIMA Working Papers WP2006-09-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. World Bank, 2002. "Poverty Assessment : Poverty in Pakistan - Vulnerabilities, Social Caps, and Rural Dynamics," World Bank Publications - Reports 15335, The World Bank Group.
    3. Cororaton, Caesar B. & Orden, David, 2008. "Pakistan's cotton and textile economy: Intersectoral linkages and effects on rural and urban poverty," Research reports 158, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Shahzad Kouser & Matin Qaim, 2013. "Valuing financial, health, and environmental benefits of Bt cotton in Pakistan," Agricultural Economics, International Association of Agricultural Economists, vol. 44(3), pages 323-335, May.
    2. Wu, Qi & Merel, Pierre & Sexton, Richard J., 2022. "Economic and Climate Determinants of Farmer Suicide in the United States," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322342, Agricultural and Applied Economics Association.

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