Indian Institue of Management 2000 M.B.A CAT - Question Paper

necessarily tend to underplay, if not ignore, potential adverse consequences, especially those which are unknown and which may
manifest themselves only over a relatively long period. On the other hand, high-pressure advertising and aggressive sales campaigns
by private companies can seduce farmers into accepting varieties without being aware of potential adverse effects and the possibility
of disastrous consequences for their livelihood if these varieties happen to fail. There is no provision under the laws, as they now
exist, for compensating users against such eventualities.
Excessive preoccupation with seeds and seed material has obscured other important problems involved in reviewing the research policy.
We need to remind ourselves that improved varieties by themselves are not sufficient for sustained growth of yields. In our own
experience, a few of the early high yielding varieties (HYVs) of rice and wheat were obtained susceptible to widespread pest attacks; and
a few had issues of grain quality. Further research was necessary to solve these issues. This largely successful research was
almost entirely done in public research institutions. Of course, it could in principle have been done by private companies, but whether
they select to do so depends crucially on the extent of the loss in market for their original introductions on account of the above
factors and whether the companies are financially strong enough to absorb the 'losses', invest in research to accurate the deficiencies
and recover the lost market. Public research, which is not driven by profit, is better placed to take corrective action. Research for
improving common pool resource management, maintaining ecological health and ensuring sustainability is both critical and also demanding
in terms of technological challenge and resource requirements. As such research is crucial to the impact of new varieties, chemicals and
equipment in the farmer's field, private companies should be interested in such research. But their primary interest is in the sale of seed
material, chemicals, equipment and other inputs produced by them. Knowledge and techniques for resource management are not
'marketable' in the identical way as those inputs. Their application to land, water and forests has a long gestation and their efficacy
depends on resolving difficult issues such as designing institutions for proper and equitable management of common pool resources.
Public or quasi-public research institutions informed by broader, long-term concerns can only do such work.

Earning:   Approval pending.