Economic impact of Bt cotton cultivation in Punjab

Cotton is an important cash crop of the Punjab state and the cottongrowers have been facing wide fluctuations in its productivity due to attack of American bollworms since 1990. The state government had permitted the cultivation of Bt cotton on 25 per cent of the total cotton area in the state during the year 2005. The present study has been undertaken to measure the comparative economics of Bt cotton and non-Bt cotton cultivation and their impact on productivity, cost of production, extent of pesticides use, income and employment, in the state. A sample of 40 experimental plots containing 20 plots of Bt cotton and 20 plots of non-Bt cotton, was selected in the village Ramgarh Bunder of the district Bathinda. To check the performance of Bt cotton over hybrid cotton and unauthorized Bt cotton, out of 20 plots of non-Bt cotton, 10 plots were taken as hybrid cotton and 10 plots were taken as unauthorized Bt cotton. The study has revealed the productivity to be higher on Bt cotton plots than all other plots and this difference was statistically significant. The Bt cotton has been found cost effective due ot higher production and could reduce the per quintal production cost by Rs 64. The Bt cotton has generated significantly more income and employment which have been observed as Rs 4300 and 17 mandays per hectare. The extent of pesticides used for Bt cotton cultivation has been significantly lower than that of non-Bt cotton. The cost benefit analysis has conferred that Bt cotton is economically viable as the benefit cost ratio is found to be positive on these farms. The significant higher productivity, more returns and very less requirement of insecticides on Bt cotton, will sustain the cotton crop in the state, which, in turn, will protect the environmental health and economic condition of the debt-ridden cottongrowers.