Potential Benefits of Bt Brinjal in India — An Economic Assessment

The potential economic benefits of Bt brinjal hybrids in terms of yield gain, reduction in insecticide-use, and increase in net returns per hectare have been reported in this study. Results have shown that adoption of Bt brinjal hybrids would provide yield gain of 37 per cent and reduction in total insecticide-use of about 42 per cent over non-Bt hybrids. Other benefits like increase in additional brinjal production (30 thousand tonnes), savings from insecticides (` 47 crore) against Fruit and Shoot Borer (FSB), increase in net returns (` 11029/ha), and reduction in price of brinjal output (3%), etc. would be at 15 per cent adoption level. With increased adoption level of 60 per cent of Bt brinjal hybrids would provide, additional production of 119 thousand tonnes, savings from insecticides against FSB Rs 187 crore, increase in net returns ` 44117/ha and likely reduction in brinjal price by 15 per cent. Simulation of gains adopting Bt brinjal hybrids has shown that country may gain aggregate direct economic benefits between ` 577 crore and ` 2387 crore annually at 15 per cent and 60 per cent adoption levels of bt brinjal hybrids, respectively. The major gains will accrue to consumers (66% of total) and rest would go to the farmers. In brief, Bt brinjal offers a large scope to increase income of farmers, reduce its cost to consumers, improve food safety and reduce health hazards and environmental pollution. The results of study may be helpful in policy decision on Bt brinjal adoption in the context of smallholders agriculture.GM food crop, Bt brinjal hybrid, Fruit and shoot borer, Economic benefits, Agricultural and Food Policy, Q11, Q16, Q15,

Rice Production in India — Implications of Land Inequity and Market Imperfections

The relationship between farm productivity and farm structure has been analyzed focusing mainly on one channel of transmission of this relationship, viz. input-use pattern in rice production. The hypothesized relationship tested in this study is that land inequality influences access to/ use of resources in rice production and in-turn influences productivity. Market imperfections aggravate the negative effect of land inequity on productivity. Results have shown that smallholders’ share in inputs like fertilizers, and irrigation has increased over time, but a large number of smallholders still do not have access to these resources. Study has demonstrated that policies like fertilizer subsidy, agricultural credit, and minimum support prices are able to address market imperfections only partially. Hence, for improving productivity and profitability of rice production of smallholders in particular and other farmers in general, addressing of structural inequity needs attention besides a focus on technology development.Agricultural and Food Policy,