Socio Economic Benefits of Bollgard

1
Socio Economic Benefits of Bollgard Product
Satisfaction(in India)
Executive Summary

• Prepared for Press Conference, Delhi
• Prepared by IMRB International, Mumbai
• April 06, 2005

2
Research perspective

• A comprehensive study was carried among the
  fellow farmers in order to ..
• Understand their Awareness , Usage and future
  Attitude towards
• Bollgard/BT cotton seeds. MICRO ANALYSIS
• Socio Economic impact analysis
• .. MACRO ANALYSIS

3
Approach
Key cotton growing states
State selection - Bollgard based

• District representing the entire state basis
• Irrigation/non-irrigation zones
• High low cotton cult. Districts
• Level of hybridization etc

Districts selection - Within States

• Taluka/Village selected based on
• 3 talukas per district
• 3 4 villages/taluka spread across
• the geography (N/E/W/S)
• 9-12 villages per district

Talukas/Villages selection Within Districts
A total of 20 districts covered as part of the
research out of the 63 cotton districts in
Central, West South India. Field work in
January, 2005 and report submitted on February
20, 2005
4
Methodology

• Random contact in the respective village
• OnetoOne personalised interview among Farmer
  (Decision maker)
• Cultivated Cotton crop in 2004.
• Decision maker for seed purchase.
• Details recorded in a semi-structured
  questionnaire

5
Study coverage

• Belgaum Haveri

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3199 Farmers contacted in 295 villages
Total farmers contacted 3199

• ____________Number
  of_______________
• State Districts Talukas Village
  Total
• 20 58 295
  3199
• AP 4 14 60 640
• KAR 2 4 45 323
• TN 2 6 30 316
• MP 4 10 40 644
• MAH 4 12 59 638
• GUJ 4 12 48 638

7
Sample adequacy

• Formula
• N ?2 Z 2
• E 2
• Recommended minimum sample per state 320 283
  10 for non-response
• The minimum nos of districts to be visited in a
  state are 2.
• Hence the nos of calls per district are 160.

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Sample adequacy
Minimum sample size per state From the above
it is clear that
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Sample adequacy

• Formula
• N ?2 Z 2
• E 2
• N (6)2 (1.96) 2 283
• (0.7) 2
• Recommended minimum sample per state 320 283
  10 for non-response
• The minimum nos of districts to be visited in a
  state are 2 (Client provided).
• Hence the nos of calls per district are 160.

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Some key definitions

• Bollgard user/Non user
• USER
• BG - Current user of Bollgard (possible user of
  other-cotton seeds also)
• NON-USER
• Non BG -Non bollgard user

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Key classifications
A User groups visited Based on types of seeds
used in 2004 for cotton Cult.
1) BG 2) Non BG
B Farmer types Based on land under cultivation
for cotton
1 Marginal (lt 2.5 acres) 2 Small (2.51
to 5.0 acres) 3 Medium (5.1 gt to 10
acres) 4 Large (gt 10 acres)
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Satisfaction on past usage Bollgard/ BT cotton
(top box scores)
Base All Respondents (1331)
()
Satisfaction levels are higher than 80 in all
states except for in TN!
In Jan, 2005 when the field work was done, TN
cotton farmers had not taken the harvest hence
a very high cant say (40)!
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Future intention to buy BOLLGARD - By States

• . ___ STATE
  WISE .
• 6 ST AP KAR TN MP MAH GUJ
• Base(UW)
• (Within respective users)
• ()
• Current Bollgard
• Users 92 97 88 89 93 97 82
• Non- Bollgard users 60 81 57 32 60 60 41

High intention to use (above 80) indicates high
satisfaction!
Even amongst non users, a score of higher than
60 is an extremely high number and reflects
confidence!
In Jan, 2005 when the field work was done, TN
cotton farmers had not taken the harvest hence
a very high cant say!
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Future intention to buy BOLLGARD By User types

• 
  .. __ FARMER TYPE _____ .
• 6 ST MAR SML MED LRG
• Base (UW) USERS
• (Within respective users)
• ()
• Current Bollgard
• Users 92 88 93 92 92
• Non- Bollgard users 60 58 58 65 63

MAR Marginal Farmer SML Small Farmer MED
Medium Farmer LRG Large Farmer
Intention to use high across small large land
holdings!
15
5 times pesticides spends on Bollworms in Non BG
as compared to BG
Rs./Acre
Average savings of Rs.1200/- per acre despite the
fact that this is a medium pest pressure year!
16
3.6 times more number of sprays on Bollworms in
Non-BG
4 sprays per acre less on average with AP showing
the maximum reduction!
17
58 higher Avg. Yield (quintal/acre) in BG
Quintals/Acre
Reflects the satisfaction levels!
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163 higher Profits for BG farmers
Rs./Acre
Profitability calculations have taken into
consideration the price of seeds!
At an overall level, an average profit of
Rs.6000/- per acre higher than Non BG
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Socioeconomic benefit of using Bollgard/ BT
Base All Respondents (3199)
TOTAL
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Expected Growth in 2005

• Projected 2005 Growth times Demand
  05/04
• Overall 3.27

In terms of number of users, from a penetration
of 18 in 2004, it is likely to go upto 52 in
2005!
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What do these benefits mean?

• Bollgard crop of 2004 has helped farmers to earn
  Rs. 7.7 billion additional income over their
  counterparts
• With penetration of 50 of total cotton acres, it
  means an additional Rs. 30 billion in the economy
  through cotton farmers
• Overall profitability had gone up by Rs. 7.7
  billion
• Overall cotton production is up by 3835K qtl of
  seed cotton or 788K bales of lint
• Bollgard reduced pesticide loadings in rupee
  terms by Rs.1.3 billion
• Other socio-economic benefits reported by farmers
  
• Peace of mind higher confidence levels
• Ability to break out of the debt cycle
• Higher prosperity

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Thank You !