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Agricultural Economics Research Review
Year : 2011, Volume : 24, Issue : 1
First page : ( 83) Last page : ( 90)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Potential benefits of bt brinjal in India — an economic assessment§

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

National Centre for Agricultural Economics and Policy Research, New Delhi-110 012

* Author for correspondence, Email: santkumar@ncap.res.in

§This paper is drawn from the research project on “Ex-ante Study on Socio-economic Benefits of Bt Brinjal” undertaken by National Centre for Agricultural Economics and Policy Research (NCAP) with financial support from the Ministry of Environment and Forests, Government of India, New Delhi.

JEL Classification: Q11, Q15, Q16

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.

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Keywords

GM food crop, Bt brinjal hybrid, Fruit and shoot borer, Economic benefits.

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