Two Decades of Bt Cotton in India: Impact and Policy Imperatives

Abstract

Genetically modified for resistance to bollworms, Bt cotton saw rapid adoption by farmers nationwide since its introduction in 2002. This paper examines the impact of Bt cotton adoption in India over two decades. The study analyzes adoption trends and effects on pesticide usage, input costs, farmer incomes, and crop loss risk. Using unit-level data from India's Cost of Cultivation Scheme (2002-2022), the study analyses the shift in production costs and returns. Findings reveal significant increase in cotton yields and returns between 2002 and 2016, although recent years display mixed results due to secondary pest pressures and heightened yield variability. The study examines the growth of Total Factor roductivity (TFP) during the pre- and post-Bt cotton periods. The estimated cumulative cost savings from the adoption of Bt cotton amount to Rs. 3.47 lakh crore, measured at constant 2011-12 prices. The macroeconomic impact of Bt cotton adoption is also examined by focusing on its role in enhancing export growth and foreign exchange earnings using FAOSTAT data. This study throws light on the policy implications for GM cotton in the country.