Current status of Bt Cotton in India. Its impact and results in farming society and Indian economy. Vitality and dynamics of Bt cotton has presented

1. Impact of Bt Cotton in India
Presenter
Chandrmouli Singh
MBA (AB) II Year
12/19/2013
IABM Bikaner
1

2. Slide to slide





Introduction
Performance: Production, area and yield of cotton In India
Socio-Economic Impact
Major Issues
Conclusion
12/19/2013
IABM Bikaner
2

3. Introduction





Bt: Bacillus thuringiensis
Bt Cotton: transgenic cotton crop
Resistant to ball worm complex
Introduced by Monsanto Pvt. Ltd. in 2002-03
Monsanto gave license to 44 companies still only 9-10 big
players in market
 Production: 32 mn bales in India (95% of total cotton
production)
 MSP of cotton ₹
1363 to ₹2242 (2002-2012)
Current market price ₹4377
12/19/2013
IABM Bikaner
3

4. Source: Seed companies reap rich harvest on Bt cotton wave. Business Standards,
Sanjeeb Mukherjee ,New Delhi, February 23, 2012
12/19/2013
IABM Bikaner
4

5. Production, area and yield of cotton in India
Year
Area#
Production*
1950-51
5.88
3.4
1960-61
7.61
6.0
1970-71
7.60
5.7
1980-81
7.82
7.8
1990-91
7.43
11.7
2000-01
8.57
14.0
2001-02
8.73
15.8
2002-03
7.66
13.6
2003-04
7.63
17.9
2004-05
8.78
24.3
2005-06
8.67
24.1
2006-07
9.14
28.0
2007-08
9.41
30.7
2008-09
9.40
29.0
2009-10
10.31
30.5
2010-11
11.14
33.9
2011-12
12.19
34.5
#In million hectares; *In million bales. One bale =170 kilograms;
**Yield in kilograms per hectare; Note: Bt cotton was introduced in India In 2002
Source: Cotton Advisory Board
12/19/2013
IABM Bikaner
Yield**
99
134
127
169
267
278
308
302
399
470
472
521
554
524
503
517
481
5

6. Socio-Economic Impact
 Benefits of Bt cotton to Indian small farmers
- Production and yield increased at a steady growth rate of 9.25
per cent and 4.95 per cent since 2002-03
- Farmers' income jumped up by nearly 375 percent
- 84 per cent farmers say that quantity of seed usage per hectare
is less in Bt Cotton than used in Non-Bt cotton
- 76 per cent and 71 per cent of farmers reduced quantity and
expenditure on pesticide usage respectively with Bt cotton
seeds
Source: http://farmersforum.in/policy/study-on-socio-economic-impact-assessmentof-bt-cotton-in-india/ on October 8, 2013
12/19/2013
IABM Bikaner
6

7.  Benefits to companies
- Labour has highest input cost 53 per cent, followed by
fertilizers 10.84 per cent, seed 9.61 per cent and mechanization
8.86 per cent
 Benefits to Environment
- Steep decline in pesticide consumption: 23 percent (2002-09)
12/19/2013
IABM Bikaner
7

8. Major Issues

-
Farmers’ suicide
Poor institutional credit
Lack of irrigation facilities in rain-fed areas
Fluctuating prices for cotton crop
Faulty export policies of the Government of India
 Higher prices
- Cost of Bt seed 450 g: ₹ 800-1400
12/19/2013
IABM Bikaner
8

9. Conclusion
 From fifth-largest cotton producer largely known for its lowquality fibre, India is now the world’s second-largest grower of
cotton, only behind China
 The surge in Bt Cotton has ushered another equally important
development – ‘the coming of age of Indian seed companies’
 ₹10,000 crore market, almost 40 per cent is dominated by Bt
cotton
 Bt cotton dramatically changed the relationship between
farmer and seed but still need to improve
12/19/2013
IABM Bikaner
9

10. Thank you
12/19/2013
IABM Bikaner
10