Economic Affairs
  • Year: 2016
  • Volume: 61
  • Issue: 2

Bt Cotton seed production: Inter-company economic analysis in Karnataka

  • Author:
  • Veerabhadrappa Bellundagi1,, Suresh S. Patil1, Vilas Jadhav1, Joycy R. Dasari2
  • Total Page Count: 8
  • Page Number: 251 to 258

1Department of Agricultural Economics, University of Agricultural Sciences, Bangalore, Karnataka, India

2Department of Central Sericultural Research and Training Institute, Central Silk Board, Mysore

*Address for correspondence: Veerabhadrappa Bellundagi: Department of Agricultural Economics, University of Agricultural Sciences, Bangalore, Karnataka, India. E-mail: veeru.b4619@gmail.com

Online published on 24 June, 2016.

Abstract

The present study was an attempt to estimate the profitability of Bt cotton seed production by farmers of Karnataka under contract farming. The total cost of Bt cotton seed production varied from one company contract farmers to other. The per acre total cost of seed production was higher (96829) in case of contract farmers with JK Seeds Company followed by Monsanto seeds company farmers (95797). The net returns received from Bt cotton seed production were higher in case of Monsanto seeds company contract farmers (46387/acre) followed by Kaveri Seeds company (33076/acre). While returns to per rupee of investment was highest (1.48) in the case of Monsanto Seed Company followed by JK Seeds Company (1.36). The Garret ranking test indicated that major constraint in seed production was non-availability of trained labour with a mean score of 72.24 followed by high wage rate (67.76). As contractual problems were concerned, poor technical assistance was the major constraint with a mean score of 69.44 closely followed by low contract price (67.34).

Keywords

Bt cotton, seed production, cost and returns, garrett ranking technique, seed company, contract