Technical efficiency and reduction in input costs in agriculture: case of genetically modified cotton

摘要

Adoption of labour-saving agricultural technologies is often determined by peak-season labour scarcity and uncertainty in labour supply, besides the need to reduce overall cost of production. Adoption of labour-saving technological innovations could also be justified on efficiency grounds. Technology-led agricultural growth is believed to ensure economic gains to cultivators, increase in real wages and creation of employment opportunities. This paper estimates changes in mean technical efficiency inherbicide-tolerant cotton, vis-a-vis conventional Bt cotton crops. Analysis indicates that use of herbicide-tolerant technology is technically more efficient, as it reduces wastage of purchased farm inputs due to absence of crop-weed competition, in addition to ease of cultivation related operations termed in literature as non-pecuniary benefits.