Emerging Markets for GM Foods: A Study of Consumer's Willingness to Pay in India

Satish Y. Deodhar, Sankar Ganesh and Wen S. Chern

No 6348, 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: A random utility approach is used to estimate logit equations which indicate what factors affect the likelihood of consumption of non-GM and GM foods, and, whether or not consumers are willing to pay a premium for non-GM/GM foods. Ceteris paribus as the price difference between non-GM and GM food rose, people were more likely to consume GM foods. Likelihood of GM food consumption was higher in the middle income brackets. Consumers were willing to pay an expected premium of 19.5% and 16.12% for golden rice and GM edible oil respectively. In case of chicken, consumers seemed to pay a very negligible premium for non-GM fed chicken. Overall, it appears that GM foods may be acceptable in the Indian market. However, basic awareness about the GM foods may have to be created among the consumers through government ministries, consumer interest groups, and biotech food-crop companies.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 25
Date: 2008
New Economics Papers: this item is included in nep-agr and nep-cwa
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea08:6348

DOI: 10.22004/ag.econ.6348

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