In the light of ongoing debates about the suitability of proprietary seed technologies for smallholder farmers, this paper analyzes the adoption and impact of hybrid wheat in India. Based on survey data, we show that farmers can benefit significantly from the proprietary technology. Neither farm size nor the subsistence level influences the adoption decision, but access to information and credit does. Moreover, willingness-to-pay analysis reveals that adoption levels would be higher if seed prices were reduced.
This paper shows that the current generation of transgenic crop varieties has significant potential to improve economic welfare in low-income countries. These varieties might increase crop yields in low-income countries in cases when pesticides have not been used. They will reduce negative health effects of chemicals when they replace them. With low transaction costs, appropriate infrastructure, and access to intellectual property, multiple varieties of transgenics will be introduced.