Economic Impact of Adopting High Density Planting System Technology in Cotton: Evidence from Telangana, India

Abstract

Cotton is a major commercial crop in India, yet its productivity remains below global standards, particularly in Telangana. This study evaluates the economic impact of HDPS adoption in Nagar kurnool district of Telangana using data from 120 farmers (60 adopters and 60 non-adopters) collected during 2021–22. Comparative cost analysis revealed that although adopters incurred 5.31 per cent higher cultivation costs due to increased seed rate, labour usage, and nutrient application, they achieved a yield advantage of 0.75 q/ha, resulting in 6.02 per cent higher net returns compared to non-adopters. Farm business income, family labour income, and farm investment income were also higher for adopters. An ex-post economic surplus model, incorporating supply and demand elasticities, indicated total social gains of Rs. 2.35 crore, with consumers receiving66.40 per cent of the benefits. The technology demonstrated strong economic viability with a Net Present Value of Rs. 1.22 crore, an Internal Rate of Return of 76 per cent, and a Benefit–Cost Ratio of 15.61. Overall, HDPS significantly enhances profitability, productivity, and welfare in cotton cultivation.