Diffusion of Bt Cotton in India: Impact of Seed Prices and Varietal Approval

Anchal Arora and Sangeeta Bansal

Applied Economic Perspectives and Policy, 2012, vol. 34, issue 1, 102-118

Abstract: The Indian government imposed a ceiling on the price of Bt cotton seeds in 2006. This paper aims to analyze the effect of such price intervention on the diffusion of Bt cotton in India. Using three variations of dynamic logistic models, diffusion paths in nine major cotton growing states from 2002 to 2008 are studied. It was found that although seed prices were significant in impacting the diffusion rates, the effect was limited. It was also found that varietal approval is an important factor affecting diffusion rates.

Date: 2012
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