‘Bt’ Cotton: Resource use efficiency in India

Since the introduction of Bt cotton in India there has been a serious debate going on its impact on cost, returns and productivity. Andhra Pradesh continue to be the largest cultivator of Bt cotton in India and it occupies third position among Indian cotton growing states both in terms of area as well as outturn. In this context, it would be appropriate to analyze the output and efficiency of inputs used in cotton cultivation in Andhra Pradesh state of India.. The Cobb-Douglas production and decomposition analysis techniques were used to estimate the influence of factors and Bt technology on output change. The results of the estimated production functions reveal that seeds and fertilizer is the most important input to which output is highly responsive in both Bt and Non-Bt cotton crop situations. The output elasticity of pesticide is higher in Non-Bt cotton cultivation than that of in Bt cotton cultivation. The decomposition revealed that the net impact of Bt technology alone is estimated to have increased the output by 10.88%. It is necessary to motivate the farmers for cultivation of Bt cotton with appropriate extension strategies and policy measures.