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Thursday, November 29, 2007

Response to Gurcharan Das' article: Let Biotech Crops Bloom

Gurcharan Das recently wrote a much discussed article in the Times of India. Several responses have been given already such as the ones here and here. These responses mostly concentrate on the real role of Bt Cotton on the increased cotton production.

Here are a few more responses pertinent to Mr. Das' article.

1. Cotton production has indeed increased over the last 4 years. There are government reports studying why. This has nothing to do with Bt Cotton. Here is a ICAR summary of why cotton production has increased. Note that there is no mention of Bt Cotton. Instead, what is recognized is that "favourable weather conditions and manageable pest situation prevailed throughout the cotton growing states of the country".

2. Even though cotton production has increased, what has been the impact on farmer income? I have no idea where he comes up with the number 17500 increase in net income per hectare. I ran a quick calculation using the CACP (Commission on Agricultural Costs and Prices) estimates for 2006-2007. They estimate that the C2-cost of cotton cultivation is Rs. 2665 per quintal in Maharashtra. Their own recommendation for cotton MSP is Rs. 1770 per quintal. But even assuming an MSP on the higher side of Rs.1900 per quintal, this means cotton production in Maharashtra is a lossy affair. This calculation has been independently confirmed for cotton and other crops by The Hindu

3. This leaves the question why is it that despite an increase in production are farmers suffering losses. Not hard to answer given that cotton imports have tremendously increased leading to dropping prices, the main reason being US subsidies. Sainath elaborates here.

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