Abstract
The performance of Bt cotton in India is analyzed on the basis of field trial data from 2001. The amounts of pesticides applied during the trials were reduced to one-third of what was used in conventional cotton, while––under severe pest pressure––yield gains were 80%. Productivity effects are modeled econometrically with a damage-control specification. The first approval for the commercial cultivation of Bt hybrids was given in 2002. By 2005, the technology is expected to cover one-quarter of total Indian cotton area. Medium-term projections show sizeable welfare gains for the overall economy, with farmers being the main beneficiaries.
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