ABSTRACT OF PAPER

Title: Diffusion of Bt Cotton In India: Impact of Seed Prices and Technological Development
Author: Arora Anchal, Bansal Sangeeta

Recent studies have analyzed the adoption of Bt cotton in the light of government seed price interventions. According to one view, reduction in seed prices enabled the farmers to buy seeds at lower prices and this resulted in the sudden surge in area under Bt cotton. The other view holds that seed price interventions had little impact on the adoption rates rather these interventions might have negative implications for the company to innovate in future. Which of the two views characterizes adoption of Bt cotton in India? Using three variations of dynamic logistic models, it studies diffusion paths in nine major cotton growing states over the period 2002 to 2008. It finds that although seed prices were significant in impacting the diffusion rates, the effect was limited. It also finds technological development to be an important factor affecting diffusion rates.

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