Potential economic benefits from adoption of improved drought-tolerant groundnut in India

The paper has examined the potential economic benefits from adoption of an improved drought-tolerant variety, viz. ICGV 91114 of groundnut in one of the most drought-prone districts in the semi-arid tropics of India. At farm-level, the variety had 23 per cent yield advantage, required 17 per cent less of variable cost and had 30 per cent less variability in its yield as compared to the ruling variety in the district. At the aggregate level, potential benefits from the adoption of this high-yielding, drought-tolerant variety are substantial. The benefits from the reduced yield variance comprise one-third of the total benefits. At a lower yield advantage and yield variance reduction, the share of risk benefits in the total benefits increase was estimated 46 per cent. Small farmers are more risk-averse; hence they would benefit more from the adoption of improved drought-tolerant varieties. These results are compelling and speak of the need for reorientation of the agricultural research agenda taking into consideration the existing and emerging abiotic stresses, and the development and dissemination of improved drought-tolerant technologies, crops and their varieties so as to enhance resilience of agriculture and adaptive capacity of farmers to cope with the risks of extreme climatic events ex-ante.