Introduction Methodology Data Results Conclusions
Are farmers willing to pay for drought
tolerant rice?
Evidence from Biha...
Introduction Methodology Data Results Conclusions
Are farmers willing to pay for drought-tolerant rice?
Evidence from Biha...
Introduction Methodology Data Results Conclusions
Motivation
How do we combine efforts to incentivize private sector
innov...
Introduction Methodology Data Results Conclusions
Droughts and rice production in India
Droughts present a significant cons...
Introduction Methodology Data Results Conclusions
Droughts and rice production in India
Introduction Methodology Data Results Conclusions
Droughts and area under rice production
Introduction Methodology Data Results Conclusions
Droughts and rice yields
Introduction Methodology Data Results Conclusions
Social consequences of droughts
Direct effects are often accompanied by ...
Introduction Methodology Data Results Conclusions
Drought-tolerant rice: Current developments and
challenges
DT rice may p...
Introduction Methodology Data Results Conclusions
Challenges to DT adoption
Benefits of DT may not be evident at all levels...
Introduction Methodology Data Results Conclusions
Methodology
Choice experiments are designed to
Ascertain how consumers e...
Introduction Methodology Data Results Conclusions
Choice tasks
Introduction Methodology Data Results Conclusions
Sample Districts
Introduction Methodology Data Results Conclusions
Rainfall Deficiencies–2012 Kharif
Introduction Methodology Data Results Conclusions
Results: Willingness to pay for rice seed characteristics
Introduction Methodology Data Results Conclusions
Observations
Demand for DT hybrid far less sensitive to price than
deman...
Introduction Methodology Data Results Conclusions
Conclusions
Farmers are largely willing to pay a high premium for
qualit...
Introduction Methodology Data Results Conclusions
Thank you!
p.ward@cgiar.org
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IFPRI- CSISA - Are Farmers Willing to Pay for Drought Tolerant Rice- Patrick Ward

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IFPRI- CSISA organized a one day high level policy roundtable on Sustainable Intensification in India’s Risk-Prone Ecologies: Investment strategies for productivity growth, resource conservation, and climate risk management” on May 19, 2014 in New Delhi.

This roundtable, brings together a high-level small group of individuals from the corporate, government, and research sectors to address one of India’s most urgent challenges to food security and economic growth—how to encourage private sector investment in accelerating productivity growth in India’s risk-prone ecologies while simultaneously conserving the environment.

There are solutions already in farmers’ fields and rural markets that respond to these challenges, and this Roundtable will highlight recent advances, for example: innovative financial products and information services for small-scale farmers; diagnostic tools for managing water and soil nutrient scarcity; custom-hired resource-conserving machinery for small farms; crop diversification and high-value marketing strategies; and stress-resistant wheat and rice varieties. But the search for solutions is far from complete. This Roundtable is meant to engage participants in a rapid-fire discussion of recent technical solutions in Indian agriculture, the prospects for policy change, and corporate outlooks for the next five years. The purpose is to help public and private sector players to identify common investment strategies, forge partnerships, and chalk out collaborative efforts to effect technological, market, and policy improvements in India’s risk prone ecologies.

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IFPRI- CSISA - Are Farmers Willing to Pay for Drought Tolerant Rice- Patrick Ward

  1. 1. Introduction Methodology Data Results Conclusions Are farmers willing to pay for drought tolerant rice? Evidence from Bihar, India Patrick S. Ward International Food Policy Research Institute 19 May 2014
  2. 2. Introduction Methodology Data Results Conclusions Are farmers willing to pay for drought-tolerant rice? Evidence from Bihar, India Aims and objectives Estimate demand for drought-tolerant rice in Bihar using well-structured discrete choice experiments Gain a better understanding for the traits valued by farmers in choosing rice seeds Explore variation in demand and the potential for market segmentation, subsidy targeting, etc. Analyze potential for private/public sector involvement in the delivery of pro-poor technologies
  3. 3. Introduction Methodology Data Results Conclusions Motivation How do we combine efforts to incentivize private sector innovation with efforts to reach small-scale, resource-poor farmers? Humanitarian use exemptions Ex: Golden Rice for Vitamin A-deficient women and children Technology subsidies Ex: Human and animal vaccines Technology embodiment Ex: open-pollinated varieties of Bt eggplant Market segmentation Ex: Microfinance services
  4. 4. Introduction Methodology Data Results Conclusions Droughts and rice production in India Droughts present a significant constraint to rice production (Pandey et al., 2007; Serraj et al., 2009) India has 22.3 million ha of unfavorable areas: 6.3 million ha. of upland rice 16 million ha. of rainfed lowland rice 20% of India’s total land area is drought prone Evidence suggests that droughts have been occurring with greater frequency in India since the beginning of the 20th century (World Bank, 2008) When droughts occur, rice production is significantly affected
  5. 5. Introduction Methodology Data Results Conclusions Droughts and rice production in India
  6. 6. Introduction Methodology Data Results Conclusions Droughts and area under rice production
  7. 7. Introduction Methodology Data Results Conclusions Droughts and rice yields
  8. 8. Introduction Methodology Data Results Conclusions Social consequences of droughts Direct effects are often accompanied by secondary effects: Lower farm incomes Higher food prices for consumers Increased indebtedness Asset depletion Poverty and malnutrition Drought risk reduces productivity even in favorable years because farmers avoid investing in inputs when they fear crop loss (Pandey et al., 2007)
  9. 9. Introduction Methodology Data Results Conclusions Drought-tolerant rice: Current developments and challenges DT rice may present a means of avoiding the increasing threats of droughts Productivity-enhancing (yield variability reducing) rather than purely productivity-increasing (yield increasing) IRRI Sahbhagi dhan: Released in 2009 in Jharkhand and Odisha Tolerant under drought stress Yield advantage of 29% and 19% over check varieties in rainfed drought-affected conditions Maintains yield advantage even under severe drought No yield penalty under normal conditions Yield advantage of 23% and 31% over check varieties under non-stressed conditions
  10. 10. Introduction Methodology Data Results Conclusions Challenges to DT adoption Benefits of DT may not be evident at all levels of stress Under normal or irrigated conditions, DT may not perform differently than non-DT At severe stress levels, DT may be indistinguishable from non-DT Moderate drought stress is best for learning about benefits Complicates learning about DT
  11. 11. Introduction Methodology Data Results Conclusions Methodology Choice experiments are designed to Ascertain how consumers evaluate purchasing options Evaluate demand for goods that consumers may not be familiar with or for which markets do not exist Closely simulate real-world purchasing decisions
  12. 12. Introduction Methodology Data Results Conclusions Choice tasks
  13. 13. Introduction Methodology Data Results Conclusions Sample Districts
  14. 14. Introduction Methodology Data Results Conclusions Rainfall Deficiencies–2012 Kharif
  15. 15. Introduction Methodology Data Results Conclusions Results: Willingness to pay for rice seed characteristics
  16. 16. Introduction Methodology Data Results Conclusions Observations Demand for DT hybrid far less sensitive to price than demand for DT inbred Small reduction in price for DT hybrid not likely to have a large effect on DT hybrid demand Significant differences in demand patterns for two seeds Demand for DT hybrid reveals much greater variation Demand for DT inbred does not vary a great deal Potential market segmentation Roles for both public and private sector engagement in discovery, development and delivery of DT seeds
  17. 17. Introduction Methodology Data Results Conclusions Conclusions Farmers are largely willing to pay a high premium for quality seeds. Farmers in our sample prefer reduction in yield variability offered by DT seeds. They are also willing to pay more for seeds that offered yield advantage even under normal conditions (no yield penalty). A significant segment of the market values the yields and lower seeding rates conferred by hybrid seeds, and the market for inbreds and hybrids can coexist. Results imply a role for both private sector DT hybrids and low-cost DT inbreds through public sector R& D.
  18. 18. Introduction Methodology Data Results Conclusions Thank you! p.ward@cgiar.org

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