Economics of cotton cultivation in Andhra Pradesh: A comparative study of bt cotton vis-a-vis traditional cotton varieties

Cotton touches the lives of ordinary people every day, whether as a product or as a means of employment. Cotton, popularly known as 'white gold', is an important commercial crop not only in India but also in many other countries. India ranks second in area among the cotton-growing countries after China. In the last few years, after the introduction and rapid spread of Bt cotton in India, there has been much debate on the pros and cons of the new technology. There are several strands in the debate on Bt cotton technology, of which five important ones are, first, the transparency and functioning of the Genetic Engineering Approval Committee (GEAC) of the Government of India; secondly, the role of private multinational companies (Monsanto in particular) and their extraction of monopoly profits; thirdly, the nature of diffusion of the technology (including issues of seed quality and purity); fourthly, the safety, health implications, and environmental implications of the new technology; and, fifthly, the economic performance of Bt cotton in terms of costs and returns. This article examines costs and returns from the cultivation of Bt cotton in Andhra Pradesh, India.