1 Cost of Cultivation Sl:heme, UAS, Bangalore.
2 Department of Agricultural Economics, University of Agricultural Sciences, Bangalore.
3 Department of Agricultural Murketing and Cooperution, University of Agricultural Sciences, Bangalore.
* Based on the research work done by the first author for his M.Sc. (Ag. Econ.) Programme.
An attempt to quantity the degree to which the domestic market for DCH-32 seed cotton is delinked from world market prices due to government regulation is examined. Comparative advantage is studied through the estimation of nominal protection coefficients both under exportable and importable hypotheses. The results show that the government policy had descriminated against the cotton cultivators of the study area and implies that DCH-32 seed cotton would he an efficient export crop.