Pushes up overall growth
The per hectare Bt cotton yield has grown significantly over the breakdown of area between rain-fed and irrigated land, in both cases, the rise has been the same. This made cotton cultivation profitable and a rise in yield in turn encouraged farmers to bring in more area under cotton cultivation. Farmers recognised the benefits of technology, and thus adopted it in a huge way. It is also clear that a rise in yield will translate into a rise in gross income.
Besides, a rise also means reduction in cost of production per kg of cotton, which would be moderated somewhat by the rise in cost of seeds. Bt cotton also enables almost complete elimination of all types of pesticides that deal with bollworm, since after the entry of Bt cotton, there has been a major reduction in the use of pesticides.
Moreover, there is a reduction of fertiliser and increase in the yield per kg of cotton. Per hectare, there is no need to apply any more fertiliser compared to when non-Bt cotton was being produced. The absolute use of water per hectare goes up by 15 to 20 per cent, where irrigation is available. The per kg use of water is significantly less though, since the rise in yield is 75 per cent.
A 70 per cent reduction in labour for spraying pesticides is also envisaged. Thus, rise in productivity of labour will be more than that of the yield. In turn, this would provide an opportunity to increase wages without increasing the total labour cost, leading to a rise in well-being in rural areas.
Exports and production on the rise
India’s global share of cotton in 2002 was 12 per cent, and now it is about 25 per cent, which makes us the largest producer of cotton in the world. Earlier there were zero exports and now we are exporting 25 per cent. Thus, cotton farmers have been able to establish the industry as a significant positive contributor to the country’s GDP.
Prices have had a moderating impact due to rise in production and reduction of cost. Also, the net income per hectare of land would go up significantly, taking into consideration the rise in income and reduction in cost. Meanwhile, rise in cotton production has also resulted in a rise in cotton seeds, which in turn would reflect in the price of cotton. The rise in cotton seed oil has in part met the rise in demand for vegetable oils because of higher incomes. Also, cotton seed cake is good for animal feed as it increases the fat content of milk, particularly, buffalos.
Yield can go up 700 per cent, with better management of farms and India can also increase production of cotton by another 30 per cent, thus benefiting the farmer as well as the economy.
