RETURNS TO POTATO RESEARCH IN INDIA: A CASE OF KUFRI PUKHRAJ
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Abstract
This study has estimated returns accrued from a potato variety called Kufri Pukhraj developed by ICAR-CPRI
in 1998. This variety is most popular in North Indian Plains and covers about 33 % of total potato area in India. Timeseries
data collated from published records have been used to assess benefits during the period 1978-2021. The economic
surplus model is employed to measure benefits in a closed economy framework at all-India level. Results have shown that
adoption of Kufri Pukhraj provided gross returns of Rs 1,03,585 crore during the period 1978-2021, and large benefits have
gone to consumers (73 %) and remaining to producers. The average annual return was assessed as Rs 2,354 crore. The NPV
from spending in potato research was observed Rs 20,073 crore, and Rs 7,975 crore at 5 % and 8 %, respectively, during
the study period. The IRR from monetary benefits was 49 %, a good rate of returns. Sensitivity analyses have provided
substantial returns, and IRR between 46-51 %. The study infers that spending on R&D on potato has proved financially
beneficial and suggests that other major technologies (varieties/ production practices/ others) having special traits may be
studied for justifying past funding and make the strong case for future funding.
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