Bt-Cotton and its Impact on Cost Structure and Profitability of Cotton Farming in Punjab Agriculture

The study shows that seeds, pesticides, fertilizers all other inputs used by Bt cotton cultivators are considerably higher than that of non-Bt cotton years. In Bt cotton growing years farmers have used substantially higher amount on yield-increasing inputs such as fertilisers and seed than the non-Bt cotton growing years. Whether the cultivation of Bt cotton crop is economically viable for Punjab farmers is an important issue that has been under discussion since the introduction of Bt cotton. The present study is carried out using cost of cultivation data covering relatively a large sample; it is expected to provide some answers as well as to resolve the controversies about the economics of cotton cultivation in Punjab. The study shows that the costs of cultivation required for Bt cotton crop is considerably higher than that of non-Bt crop. Contrary to the claim made by the seed company, Bt cotton has not reduced the consumption of pesticides, in fact, farmers cultivating Bt cotton crop have had higher expenditures on pesticides. However, productivity is found to be substantially higher in Bt cotton years than that of non-Bt cotton years, except in the last period of our study where yield is declining. Although the results of the study clearly suggest that the productivity and profit from Bt cotton cultivation years is substantially higher than the non-Bt-cotton years, it is not completely free from problems. New varieties with resistance to newly occurring pests must be developed, or it may cause another failure in cotton crop at any point of time in future.