Impact assessment of ICAR FUSICONT using economic surplus model

Abstract: India is the largest banana producer in the world, with a production of 36.61 million tons and Grand Naine is the leading variety cultivated. However, Fusarium wilt, caused by Fusarium oxysporum f. sp. cubense Tropical Race 4 (Foc TR4), poses a significant challenge to this industry. The disease in India was first reported during 2017 in Uttar Pradesh further the disease has spread to other banana growing states like Bihar, Karnataka jeopardizing both commercial and subsistence farming. In this paper, we evaluate the impact of ICAR FUSICONT a bio-pesticide for managing Fusarium wilt on yield and economics in two cultivars viz., Grand Naine and Elakki. We used economic surplus method assuming closed economy model to assess the returns to research investment. The performance of ICAR FUSICONT led to significant improvements in yield and net returns. ICAR FUSICONT technology has been adopted in an area spanning 8,550 hectares. In Elakki banana, the yield increased by 8.25 t/ha in Karnataka, while the incremental yield was about 16.5 t/ha in Grand Naine variety in UP and Bihar. The farmers who adopted the technology witnessed a twofold increase in the net returns while the returns per rupee of expenditure increased from 1.30-1.34 to 1.78-1.85. Stepwise dummy variable regression indicated a substantial increase in net returns with adopting FUSICONT technology (Rs. 2,36,824 per ha). The total producer’s surplus generated by the technology was Rs. 210 crores and Rs. 94 crores for consumers, leading to a total economic surplus of Rs. 304 crores. In the era of increased threat caused by Foc TR4, the widespread adoption of the technology must ensure sustainability in banana cultivation and protect the producers' livelihood.