A Resources use efficiency analysis of Bt and Non Bt cotton farmers in Karnataka, India

Abstract

Cotton is the major commercial crop amongst all cash crops in India and provides livelihood to more than 60 million people in its cultivation, processing and textile industry. Cotton crop is infested by various pests causing significant yield losses therefore Bt cotton was introduced in India to reduce pesticide consumption and also increase productivity. Since introduction there has been ongoing debate on the superiority and/ or inferiority of Bt cotton over non Bt cotton. Therefore the present study was undertaken to examine the Bt cotton technology on output and efficiency of inputs used in cotton cultivation in Karnataka state of South India during 2007. Primary data was collected from 90 farmers cultivating Bt and non-Bt cotton in Haveri district, Karnataka, India. The Cobb-Douglas production and decomposition analysis techniques were used to estimate the influence of factors and Bt technology on output change. The production function analysis indicated that the co-efficients of expenditure on fertilizers, labour, plant protection chemicals and land were significant in case of Bt cotton cultivation. The result of Resource use efficiency analysis showed that efficient use of labour, fertilizers and seeds had contributed the most to the difference in returns between Bt-cotton and non-Bt cotton cultivation. Contribution of differences in the quantity of inputs used to higher returns from Bt cotton to the measured difference in gross returns between Bt and non-Bt cotton was 56.56 per cent, while that of the efficiency in the use of inputs was 23.83 per cent. Key words: Bt cotton, Resource use efficiency, Decomposition analysis