The economics of BT cotton production in India–a meta analysis

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Abstract or Summary

India became the largest Bt cotton planter and the second largest cotton producer and exporter in the world in 2008. Since its introduction in 2002 the Bt adoption rate increased 152 fold and generated increased economic benefit of USD 3.2 billion to Indian cotton farmers. However, there is a continuous debate over the economic impact of Bt cotton on Indian farmers. This study undertook a vote counting based meta-analysis to 16 empirical studies on economics of Bt cotton in India and evaluated the inclusion and significance of three broad categories of factors determining the net return. The study shows that farm inputs and farm characteristics are the factors most often included in the studies. However, the economic outcome is most likely to be significantly determined by irrigation, use of pesticide, and insecticide. The study concludes that the empirical evidences suggest after its commercial release in 2002 Bt cotton has a significant positive impact on the economic conditions of the cotton growers in India.

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