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Socio Economic Benefits of Bollgard & Product Satisfaction(in India) : 

Socio Economic Benefits of Bollgard & Product Satisfaction (in India) Prepared for : Press Conference, Delhi Prepared by : IMRB International, Mumbai April 06, 2005 Executive Summary

Research perspective : 

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

Approach: 

Approach State selection - Bollgard based 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 Districts selection - Within States Talukas/Villages selection – Within Districts Key cotton growing states District representing the entire state basis : Irrigation/non-irrigation zones High & low cotton cult. Districts Level of hybridization …… etc 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

Methodology: 

Methodology Random contact in the respective village One–to–One personalised interview among Farmer (Decision maker) Cultivated “Cotton crop” in 2004. Decision maker for seed purchase. Details recorded in a semi-structured questionnaire

Slide5: 

Study coverage Belgaum & Haveri

3199 Farmers contacted in 295 villages: 

3199 Farmers contacted in 295 villages ____________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 Total farmers contacted = 3199

Sample adequacy: 

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.

Slide8: 

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

Sample adequacy: 

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.

Some key definitions: 

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

Key classifications : 

B Farmer types: Based on land under cultivation for cotton A User groups visited Based on types of seeds used in 2004 for cotton Cult. Key classifications 1 Marginal (< =2.5 acres) 2 Small (2.51 to 5.0 acres) 3 Medium (5.1 > to 10 acres) 4 Large (> 10 acres) 1) BG & 2) Non BG

Slide12: 

Base : All Respondents (1331) Satisfaction on past usage Bollgard/ BT cotton (top box scores) In Jan, 2005 when the field work was done, TN cotton farmers had not taken the harvest – hence a very high can’t say (40%)! Satisfaction levels are higher than 80% in all states except for in TN! (%)

Slide13: 

. ___ 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 Future intention to buy “BOLLGARD” - By States In Jan, 2005 when the field work was done, TN cotton farmers had not taken the harvest – hence a very high can’t say! 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!

Slide14: 

.. __ 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 Future intention to buy “BOLLGARD” By User types MAR : Marginal Farmer SML : Small Farmer MED : Medium Farmer LRG : Large Farmer Intention to use high across small & large land holdings!

5 times pesticides spends on Bollworms in Non BG as compared to BG: 

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!

Slide16: 

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!

58% higher Avg. Yield (quintal/acre) in BG: 

58% higher Avg. Yield (quintal/acre) in BG Quintals/Acre Reflects the satisfaction levels!

163% higher Profits for BG farmers: 

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

Socioeconomic benefit of using Bollgard/ BT: 

Socioeconomic benefit of using Bollgard/ BT TOTAL Base : All Respondents (3199)

Expected Growth in 2005: 

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!

What do these benefits mean?: 

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

Thank You !: 

Thank You !