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September 7, 2007
Estimating the adoption of Bt
eggplant in India: Who benefits from public–private partnership?
Vijesh V. Krishna, a, and Matin Qaima
aDepartment of Agricultural Economics and Social Sciences
(490b), University of Hohenheim, 70593 Stuttgart, Germany
Received 17 November 2005; revised 4 August 2006; accepted 20
November 2006. Available online 11 January 2007.
ABSTRACT
The study analyzes ex ante the adoption of insect-resistant Bt
eggplant technology in India. Farmers’ willingness to pay (WTP)
is estimated using the contingent valuation method. Given the
economic importance of insect pests in eggplant cultivation, the
average WTP for Bt hybrids is more than four times the current
price of conventional hybrid seeds. Since the private innovating
firm has also shared its technology with the public sector,
proprietary hybrids will likely get competition through public
open-pollinated Bt varieties after a small time lag. This will
reduce farmers’ WTP for Bt hybrids by about 35%, thus decreasing
the scope for corporate pricing policies. Nonetheless, ample
private profit potential remains. Analysis of factors
influencing farmers’ adoption decisions demonstrates that public
Bt varieties will particularly improve technology access for
resource-poor eggplant producers. The results suggest that
public–private partnership can be beneficial for all parties
involved.
Corresponding author. Tel.: +49 711 459 226 02; fax: +49 711 459
237 62.
Food Policy
Volume 32, Issues 5-6, October-December 2007, Pages 523-543
http://dx.doi.org/10.1016/j.foodpol.2006.11.002
RELATED NEWS ITEM
Source:
CropBiotech Update
Indian
farmers are willing to pay more for Bt eggplant hybrids than
for conventional seed
An economic analysis has
determined that Indian farmers are willing to pay four times
more for Bt eggplant hybrids than for conventional
varieties. The study, conducted by Vijesh Krishna and Matin
Qaim, indicated that is partly due to savings that the
farmer are likely to incur due to reduction of pesticide
inputs. The Bt hybrids were estimated to require about seven
times less pesticide than the conventional counterparts as
determined in field trial experiments.
India is expected to be the
first country to commercialize Bt eggplant. The first hybrid
varieties were developed by the Maharashtra Hybrid Seed
Company (MAHYCO). Other open pollinated varieties (OPV) are
being developed by the Indian Council for Agricultural
Research (ICAR), but these will be released around two to
three years after the Bt hybrids become available in the
market.
Krishna and Qaim concludes
that the OPVs will benefit more resource-poor eggplant
farmers in India since seed costs will be more affordable.
They also encourage continuing public-private collaboration
to facilitate technology approval processes for such
proprietary technologies.
For more details, the paper
published in the journal Food Policy can be accessed at
http://dx.doi.org/10.1016/j.foodpol.2006.11.002
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