Two Studies show benefits of BT Cotton in India

MUMBAI, India (July 11) — With adoption of BT cotton technology, farmers engaged in cotton cultivation earned additional income of Rs. 7039 crores in 2006; saved Rs.1600 on pesticides
use in their one hectare of farm land compared to farmers growing conventional cotton hybrids; and had higher access to social services important for family health and welfare, according to two
studies on “BT Cotton Farming in India” released today by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“The Socio-Economic Appraisal of BT Cotton Cultivation in India” was undertaken byIndicus Analytics,an economics research group in New Delhi that has been providing research inputs to Central
and State ministries, World Bank, UNICEF, USAID, and many other national and international organizations.The study on “Economic Benefits of BT Cotton Cultivation in India”wasconducted by IMRB
International.

The Indicus Analytics study covered more than 9000 farmers across 467 villages and 28 districts of the eight cotton growing states. It focused on the social benefits realized by farm families
as a result of higher incomes resulting from BT cotton cultivation.

The IMRB International study on economic benefits covered nearly 6000 farmers from 111 Taluks of 37 districts, including 4188 BT and BT II cotton farmers and 1793 other conventional cotton
farmers in nine cotton growing states.

Anil K. Agarwal, ASSOCHAM Immediate Past President, said that both the studies have established the tremendous socio-economic benefits that have accrued to the cotton farmers as a result of the
introduction of this technology.

Some of the major findings of the Indicus study include increased maternal care services, higher levels of immunizations and larger school enrollment for the children of BT farmers as compared
to non-BT farmers.

“This study proves that the average Indian cotton farmer who has adopted BT cotton is leading a much better lifestyle over his non-BT counterpart,” said Dr. Laveesh Bhandari, Director of
Indicus Analystics. “The impact of BT farming was found to be positive on the women and children in the BT households. The increased use of BT cotton cultivation has also had a positive impact
on the farming community.”

Women from BT households had a higher access to maternal care services and children from BT households were found to have a higher level of immunization as compared to children from non-BT
households. Children belonging to BT farming households showed significantly higher school enrollment compared to their non-BT counterparts in 5 out of 8 states surveyed.

BT cotton growing villages benefited greatly with an increased access to services such as telephone systems, electricity, drinking water, better internet connectivity, banking services, and
better access to markets with a corresponding increase in shops and goods.

The Indicus study found that non-BT cotton farming households tend to be worse off across a range of socio-economic indicators. It was also observed that those who have taken up BT recently are
not as well off socio-economically as those who took it up two or more years earlier. These results strongly links BT cotton farming to overall socio-economic progress, not merely linked to
increase in income.

“The study indicates a strong relationship between the decision to adopt new technology, including new seeds, changing attitudes within a household and many opportunities for development that
come with adopting BT cotton,” said Dr. Bhandari.

The IMRB study also reports that pesticides consumption by BT farmers in their one hectare of farm land is estimated at Rs.1300 compared to Rs.2900 per hectare by farmers growing conventional
hybrids in nine cotton growing states of Andhra, Karnataka, Tamil Nadu, Madhya Pradesh, Maharashtra, Gujarat, Punjab, Haryana and Rajasthan.

Incremental benefits of BT over conventional cotton in 2006 include that net revenue per acre being Rs.7757 higher. Percentage of gross revenue benefit was up by 162 percent.

“It is also clearly evident that a BT farmer has higher level of income when compared to non-BT farmers,” said Nikhil Rawal, Senior Vice President & Executive Director, IMRB International.
“Increased earnings are also seen in the reduced amount of pesticide sprays required, amounting to 4.6 sprays less over conventional hybrid seeds resulting in an average savings of Rs. 934 per
acre for BT. farmers.”

Farmers who planted BT cotton in 2006 earned an additional Rs. 7039 crores in income, based on 8.77 million acreage penetration achieved during this crop season. This increase in acreage and
number of farmers adopting BT is a testament to the continuing success and acceptance of the technology in India, Rawal said. The survey also indicates that there has been approximately 50
percent higher yield increase in BT fields in 2006, when compared with conventional cotton fields

SOCIO-ECONOMIC BENEFITS OF

BT COTTON FARMING IN INDIA

KEY HIGHLIGHTS
● In terms of economic infrastructure and economic activity, BT villages are clearly ahead when compared with NonBT areas in terms of presence of
permanent markets (44 percent in BT villages vs. 35 percent in non-BT villages), greater penetration of shops (24 percent vs. 18 percent), banking (34 percent vs. 28 percent), and other
areas.
● BT farming households are found to be faring well on the socio-economic front across a broad range of parameters. Similarly, it is found that non-BT
cotton farming households tend to be worse off across a range of socio-economic indictors.
● A farmer who predominately grew BT cotton, compared to cotton farmer not growing BT cotton, was more likely to adopt better farming practices. Such
practices include cropping rotation, etc
● The impacts of BT farming on members of a BT household were found to have been positive in many areas, especially for women and children.
● The women belonging to BT households availed of maternal services like antenatal checkups in larger percentages than the corresponding women from
non-BT households. The same was true for the case trained assistance at birth when the birth took place at the husband’s home (the most common location of deliveries)
● Clear progress was visible on the immunization front among the BT predominant households. The children from BT predominant households (67 percent)
were found to have higher levels of immunization compared to children belonging to non-BT households (62 percent).
● As regards education, children belonging to BT farming households show significantly higher enrollment compared to their non-BT counterparts in 5 out
of 8 states surveyed.

ECONOMIC BENEFITS OF BT COTTON FARMING IN INDIA

KEY HIGHLIGHTS
● Farmers who planted BT cotton in 2006 earned an additional Rs. 7039 crores in income, based on 8.77 million acreage penetration achieved during this
crop season. This increase in acreage and number of farmers adopting BT is a testament to the continuing success and acceptance of the technology in India.
● The survey confirms that there has been approximately 50 percent higher yield increase in BT fields in 2006, when compared with conventional cotton
fields
● The number of sprays was about five sprays less per acre for bollworms in BT plants.
● The net profit to farmers from BT cultivation increased significantly to 162 percent / Rs.7757 per acre. The reduction in bollworm pesticide sprays
translated into an average savings of Rs.934 per acre for BT farmers. This transforms into a benefit of Rs. 11.60/- for every Rs. 1/- spent for cultivating BT and Rs. 10.80/- for cultivating BT
II cotton.
● The perception of an average farmer on the future of BT farming in the country seemed to be positive. At an average 93 percent of the BT users were
satisfied with BT performance.
● Farmers who have been growing BT for the past few years also agreed to BT cotton cultivation having impacted their farming incomes positively

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