Economic evaluation of pesticide use externalities in the Cotton Zones of Punjab, Pakistan.

Khan, M. Azeem ; Iqbal, Muhammad ; Ahmad, Iftikhar 等

The crop protection strategy in Pakistan is almost entirely based on pesticide use whereas development of IPM-based technologies is in its initial phases of scrutiny as well as implementation. The inefficient use of chemicals has resulted in environmental pollution and sub-optimal returns to the society on the costly investments. This study estimates the social cost of pesticide use and suggests appropriate guidelines for regulating the safe use of pesticides. An overall economic evaluation of the externalities for the current pesticide use levels shows that external costs are quite higher than the currently paid price at the farm gate level. The environmental degradation and public health costs inflicted on the society due to the inefficient chemical use on cotton crop amounts to twelve thousand million rupees. A reduced reliance on crop protection through chemical methods seems inevitable for a sustainable and healthy crop production.

I. INTRODUCTION

At the inception of Pakistan in 1947, there was practically no plant protection service in the country and economic soundness of plant protection measures was not even realized for a long time. The use of chemicals as preventive measures to reduce losses by insects and diseases was almost non-existent during 1960s. However, the "grow more" pressure rendered the traditional methods insufficient, to control the ever increasing pest problem from 1970s onwards. Consumption of pesticides in Pakistan has increased from 665 metric tonnes (MT) in 1980 (when subsidy was withdrawn) to 69897 MT in 2002. This colossal increase in pesticide consumption has not led necessarily to an increase in the yield of crops, as demonstrated by Poswal and Williamson (1998) and Ahmad and Poswal (2000). This indiscriminate use of pesticides has destroyed the bio-control agents in the agro-ecosystems and the populations of natural enemies of the insects and pests have declined up to 90 percent during the last decade (of the past century) especially, in cotton growing areas of the country [Hasnain (1999)].

The farmers are mainly concerned about the private cost of pesticide they have to incur to achieve desirable outputs and are least concerned about the undesirable by-products of their production processes. The pressure to maximize output is enormous especially, on low-income resource-poor small farms and the tenants. They have little concern for degradation of natural resources, health risks, and future productivity. It is presumed that social cost is not currently being accounted for in the prices of pesticides and as a consequence current level of pesticide use is excessive. In the past, the divergence between the private and social costs of pesticide use has been overlooked to a criminal extent and little efforts have been undertaken by the government to internalize the externalities involved. This unplanned use of chemicals has resulted in environmental pollution and sub-optimal economic returns to the society on the costly investments. Despite a rapid increase in the use of pesticides especially on cotton crop, the dominant sub-sector of Pakistan's agriculture, little research is conducted to evaluate the productivity of pesticide use or to analyze their possible adverse effects on the natural resource base of the country.

The studies conducted at the international arena have shown massive external costs, associated with the use of pesticides in agriculture, to the respective societies. Pimental, et al. (1992) estimated that the external cost of pesticide use for the USA amounted to $8 billion per annum. A second attempt was made by Steiner, et al. (1995) who estimated a cost of externalities of the order of $1.3 billion to $3.6 billion for the USA economy. This was two to three time less than the externality cost estimated by Pimental and his colleagues. Waibel, et al. (1999) estimated an external cost of pesticide use amounting to at least 252 million DM per year for Ex Federal State of Germany. This cost accounted for 23 percent of the respective private cost actually paid by the producers.

These external costs are not paid for the impairment of health among pesticide users, reduction in biodiversity, ground water contamination, residues in food items, and so on. These costs need to be internalized by making all the stakeholders to consider it into their accounts. This study attempts at highlighting the external costs associated with pesticide use in Pakistan and to suggest appropriate guidelines for regulating the safe use of pesticides in the country. The externalities assessed in this study arise from the routine and legal use of pesticides on cotton crop in Multan and Bahawalpur, the two main cotton-producing divisions of Punjab. The estimates include the quantitative extent of adverse impacts of pesticide on human health, natural resources, food chain, production losses, and domestic animal poisoning.

II. DATA SOURCES AND METHODOLOGY

Data

Formal survey and case study methodologies were used to collect evidence on pesticide applicators' poisoning, health hazards to domestic animals, loss of biodiversity, production losses due to pest resistance, loss in wild honeybee colonies and production loss due to reduction in pollinators. Pesticide-associated poisoning in. animals and human was further substantiated through collecting evidence from local veterinary clinics and human health dispensaries and hospitals. The surveys and scientific case studies provided sufficient base to estimate external cost of pesticide in monetary terms. The secondary data from national statistics and information collected from research and extension system were used to aggregate findings of case and scientific studies.

The study also used the results of lab analyses of blood and food constituents and the cross-section information collected from pesticide dealers, manufacturers, laborers and market intermediaries. The yearly statistical books were consulted for area and production of cotton crop, vegetable crops, livestock census, and pesticide use overtime. The experimental data collected from the provincial and central cotton research institutes were used to estimate production losses that ensue due to pest problems. The vegetable market intermediaries were contacted to collect data on seasonal supplies and price variability of locally produced vegetables.

Analytical Framework

The external costs are categorized as actual and potential costs in terms of damage costs or damage abatement costs respectively Table 1. The potential costs include costs of establishment of laboratories for pesticide residue analyses, residue monitoring programmes, and training programmes on the safe use of pesticides. The loss of biodiversity, pest resistance, fatalities (animal, human, honeybee as pollinator, and birds) are the instances of actual cost born by the society. The assessment of the actual and potential external costs was required to specifically design the corrective measures in accordance to the pesticide use level and its relative impact on health, pest resistance and environment.

The procedure of the study is based on the methodology developed by the Hannover University Pesticide Policy Project (HU-PPP), which has been tested before in several countries in Asia, Africa and Latin America. The HU-PPP concept for policy analysis in crop protection has been widely recognized and is now being used by international and bilateral donor agencies.

Different economic evaluation techniques like market price and contingent evaluation approaches were used to reach at the reliable results. The scientific evidence based on lab analyses was accumulated on health hazards to women cotton pickers, contamination of food products (vegetables, fruits, edible oil and animal milk) and natural resources (soil and water). The results synthesized in this study include occupational poisoning, food residues, drinking water contamination, pest resistance, loss of bio-diversity, cost of prevention and abatement measures, and the cost of awareness campaign.

The evidence on known (workdays loss, treatment cost, human and animal fatalities and pollination losses etc.); probable (rejection of contaminated products like fruits, vegetables, cottonseed oil, drinking water, loss of wildlife, birds and beneficial insects etc.); and possible external costs (monitoring, analyses, and mass media costs, etc.) were collected from the sample locations in the cotton growing divisions (1) of Multan and Bahawalpur.

III. RESULTS AND DISCUSSION

The plant protection measures in Pakistan at present are mostly limited to the use of pesticides and collectively 83 percent of the pesticides are used to control insects, pests and diseases of cotton, rice and sugarcane. In cotton production, which accounts for about 54 percent of the pesticide quantity, the indiscriminate use has provoked the development of resistance in insects/pests and the outbreak of secondary pests. This has resulted in high crop protection costs and declining cotton yields. The average number of insecticide applications on cotton increased significantly in 1990s (Figure 1).

[FIGURE 1 OMITTED]

The majority of the farmers were using a minimal level of zero or 1-2 sprays during 1988 or earlier. This proportion declined considerably by 1991-92 and the percentage of cotton growers applying 3-4 sprays in a season attained its peak during 1991 and then switched over even to a higher number of 5-6 sprays in a season. The most of the cotton growers were applying six sprays to their cotton crop during 1996. In the past few years, a greater number of growers have moved towards 7 to 11 sprays. The increase in number of sprays was not mainly for yield improvements, but to avoid crop damages--mainly accruing due to the massive pest buildup and development of resistance in pests.

Besides development of resistance in insects and pests, the indiscriminate use of pesticides has also destroyed the bio-control agents in our agro-ecosystems. In fact, increased pesticide consumption has not led to increase in yields in all cases, particularly in cotton. Almost three-fold increase in pesticide consumption is observed at the expense of disproportionate improvements in the yield of cotton crop, which has consumed lion's share of pesticides (Figure 2).

The case study results demonstrated that there is a great potential for reducing over use of pesticide on cotton in Pakistan because the least efficient farmers achieve the same cotton yield while spending 70 percent more on pesticides than the best of their counterparts. It seems that an ample scope exists for encouraging a more efficient pesticide use without inflicting any economic injury to the farmers. For example, by applying an input charge (which would recover the implicit subsidies and signal the real costs of the inputs to the users) accompanied by appropriate changes in the pesticide regulatory policy.

[FIGURE 2 OMITTED]

Initially, in the 1950s pesticides were used for the first time to combat the attacks of locust. In 1954, the government imported formulated pesticides amounting to 254 metric tonnes. This was the beginning of the pesticides business in the country. Until 1980, Plant Protection Department was responsible for pesticide import and its distribution in the country through national agricultural extension network. Most of the pesticide imports were for aerial spray to control locust, pests of sugarcane, cotton, rice, tobacco, and fruit crops. The pesticides were subsidized and aerial spraying was free of cost. Thereafter, the government started to charge nominal cost of pesticides from farmers, which was then extended up to 25 percent recovery of the total pesticide application cost. The subsidy on pesticides was totally abolished during 1980 and 1982 in Punjab and Sindh, respectively.

Pakistan's crop protection policy has been focused on safeguarding the supply of affordable pesticides while maintaining standards for product registration according to internationally accepted norms. Beginning in 1980, pesticide distribution was shifted entirely from the government to the private sector. A policy for stimulating local formulation of pesticide products has been in place. The registration scheme was deregulated in 1993 to facilitate imports of generic compounds already registered under trade names and imports of pesticides that are registered and used in OECD countries or China.

The majority of pesticide products are now imported under the generics and import permission scheme as opposed to trade name registration. The Regulations for distribution, storage, use and disposal have been promulgated, but generally lack enforcement. The pesticide product quality problems and adulteration reportedly has increased after the introduction of the generic scheme. With regard to monitoring of residues in food, drinking water and the environment, a comprehensive national monitoring system is still missing.

Externalities of Pesticide Use

The environmental and social cost of pesticide use to the nation amounted to 11941 million rupees per year (Table 2). The bulk of the cost is caused through production losses due to resistance development in cotton pests and damages to domestic animals, followed by damage to human health, loss of biodiversity and monitoring costs of residues in food chain. The costs of monitoring through residue analysis and implementation of pesticide use regulations belong to the damage prevention costs.

Human Health Costs

More than one quarter of the farmers did not show much consciousness in observing basic precautions during spraying operations. The pesticide-related illnesses are causing a considerable number of fatalities, treatment costs, and income loss especially, in the poorer sections of the rural communities. Substantial amounts of 24 million in terms of treatment, 18 million for work loss during ailments and 224 million rupees for accidental deaths are estimated as the externality costs. Total health externality of pesticide applicators adds to 267 million rupees leaving aside the partial recovery and long-term consequences to the effected individuals (Table 2).

Most of the cotton pickers were not aware of using caution (such as putting on gloves, wearing shoes and covering face) during picking. Health hazards to women cotton pickers show that about 2.23 million women got sick from their exposure to pesticide used on cotton crop and huge economic losses of 105 million rupees occur due to health treatment costs. The money value of five days work loss of 2.23 million-picker amounts to 660 million rupees that is an external cost to the lowest income strata of society (Table 2). In this way an externality of 765 million rupees is inflicted on women involved in cotton picking on field where pesticide have been applied most extensively.

Tahir, et al. (2001) conducted a study in Multan and Bahawalpur divisions to assess the level of poisoning among cotton pickers. The cholinesterase (ChE) activity levels measured in the blood of cotton pickers showed chronic pesticide poisoning. The results of blood analysis given in Table 3 show that the post spray season ChE activity in blood samples of only 10 percent female pickers was found to be in the normal range of 88-100 percent whereas this level was hazardous (00-50 percent) among 42 percent of the pickers.

Out of 1000 labourers working at 25 pesticide plants 500 were reported sick by inhaling pesticide emissions. The treatment cost for ailments accounted for about 0.1 million in case of minor ailments and 0.45 million rupees for acute poisoning cases.

Pesticide Residues in Food Chain

The residual effect of pesticides applied on crops appears in the food chain. The analysis of samples of food and animal feed products produced in the high pesticide use zones showed that a high proportion of these items contain residues in excess of standards for marketing and consumption (Figure 3). The presence of residues in food and fiber products is threatening the export opportunities to markets in foreign countries.

[FIGURE 3 OMITTED]

All the vegetable samples were found contaminated, out of which 63 percent samples were exceeding MRLs. The 51 percent of the vegetable produce that was found unsuitable for human consumption would account for 9.4 thousands metric tonnes (MT) of kharif vegetables that should either be thrown away or abandoned for human consumption. This could result into an economic loss of 72.3 million rupees if pesticide use on vegetable is not regulated. About 327 thousand MT of edible oil and 2146 thousand MT of oilseed cake produced in the Punjab would need to be abandoned for consumption purposes. The economic value of this externality amounts to 7.23 million for cottonseed oil and 16.1 million rupees for the oilseed cake.

Animal and Honeybee Poisoning

The use of pesticide on crops is also resulting in the poisoning of domestic animals through various ways. The common sources of animal poisoning are: (a) feeding fodders carrying sprayed chemicals; (b) chemicals residues in the cotton seed cake; and (c) chemicals residues in the wheat straw. Animal succumbed to acute poisoning if fed accidentally with poisoned fodder. Major consequences of poisoning on animal health include loss in milk productivity (40 percent), loss in vigor (36 percent) and mortality (18 percent). The money value of externality of animal poisoning incidences amounts to 1304 million rupees, when aggregated over the total population of small and large ruminants and poultry birds in the study zone. The increased pesticide use has severely affected the wild honeybee colonies in the area and has deprived the farming communities of sizeable direct and indirect benefits. The direct annual loss of 9.91 million rupees is accrued on account of a loss of 5661 MT of honey. The indirect loss is through probable reduced yield of pollinated crops due to decline in population of the honeybees. There is no scientific evidence available in Pakistan, to directly relate sunflower yield losses to depletion in pollinators' population. Piemetal, et al. (1,993) estimated honeybees related pollination losses of about 10 percent for pollinated crops. Assuming a conservative 10 percent loss in sunflower production due to reduction in honeybees as pollinator would result in a net annual loss of 6.55 million rupees in the selected 9 districts of the cotton zone.

Pest Resistance, Resurgence, and Biodiversity Loss

The greatest concern is now also being shown to the question that how the use of pesticides effect biodiversity. Pearce and Tinch (1998) indicated that yet this is the subject about which least appears to be known. Irshad (1999) has classified a comprehensive review on pest resistance problems in Pakistan. He improved upon his predecessors Matin and Jabbar (1988) and Jabbar (1988), who reported preliminary information on the pest resistance issues. The development of pesticide resistance in pest population is resulting in additional applications of pesticides to maintain the crop yields. This becomes more obvious during pest flare-ups, which cause serious setbacks (2) to our cotton crop. The additional cost of increased pesticide application, due to pesticide resistance developed in the pests, is about 11000 rupees per hectare. This amounts to 5667 million rupees when extrapolated to 1.7 million hectares of cotton grown in the study area. Similarly, a loss of 374 million rupees per annum is estimated occurring due the loss of biodiversity resulting from pesticide use.

The structure of external costs of pesticide use in our agricultural production systems is shown in Figure 4. About 49 percent external cost can be attributed to the pest resistance problem, while loss in biodiversity and human and animal health damages respectively accounted for 29 and 20 percent of the total external costs. The damage prevention cost on residue monitoring and public awareness is less than 2 percent.

This shows that what a meager amount we are spending on damage prevention strategies against the damages caused through production losses, additional pesticide use, human health and animal fatalities.

The Cost Benefit Analysis of Pesticide Use

The benefit cost ratios were estimated separately using private costs as well as social costs associated with pesticide use and are reported in Table 4. Potential yield gains of pest control were estimated by calculating 27 percent yield loss of cotton due to insect pests and assuming 50 percent effectiveness of insecticide control under farmer conditions. The production loss estimates are based on the results presented in the annual reports (1992-1999) of Central Cotton Research Institute, Multan. About 272 kg per hectare increase in the yield of seed-cotton was estimated with pesticide use. The actual gross benefit of pest control was calculated as 8069 million rupees by multiplying incremental yield with price of seed-cotton (Rs 17.5/kg) and the total cotton area of 9 districts (1.7 million hectare). In order to calculate benefit cost ratio, the private costs of pesticides were added to the producer rent yielding the gross value added from this input factor.

The social cost (private plus the external cost) resulted into a benefit-cost ratio of about 0.43. This shows that benefit cost ratio of 1.14 reduced significantly when external cost was added in the total cost. However, the ratio of external costs to the private cost of pesticide use is quite high (1.64), which shows other tradeoffs involving environmental quality, irreversible damages to agro-ecosystem and human health problems.

An overall economic evaluation of the externalities of current pesticide use levels show that the external costs are quite higher than the currently paid price at the farm gate level. This means that the true cost of pesticides for the national economy are currently grossly understated since they are more than twice as high as assumed by the participants in the pesticide market. If externalities are incorporated in the market price of pesticide products, there will be an incentive to reduce inefficient use and related external effects, which subsequently benefits the national economy. From a strictly cost benefit approach, it appears that pesticide use is not beneficial (Table 4).

IV. CONCLUSIONS AND RECOMMENDATIONS

The present study conducted in the cotton growing belt of Pakistan provide evidence which shows significant impacts of pesticides on society and strongly recommends the promotion of precautionary approaches towards the use of pesticides in agriculture. The reduced reliance on crop protection products seems inevitable for sustainable and healthy crop production. The basic structure of the external costs of pesticide use established in this study help to draw important conclusion to introduce economic instrument for regulating the pesticide use.

Imposition of access on import of pesticides and raw materials is recommended for investment of the proceeds in health care, residue monitoring, research and extension. The emphasis needs now to be shifted from sheer plant protection to total crop management for sustainable and healthy crop production. Similarly, other steps to discourage cheap availability of pesticide to users and strict enforcement of regulatory measures are also suggested. The major future strategy components to promote rational use of pesticides are given here as under.

Policy Regulations

The government of Pakistan should review mechanism for the enforcement of existing legislation in pesticide for import, registration, formulation, distribution, advertising, usage and disposal. The legislation should be amended in cases where human health and the environment are endangered to an un-necessarily high degree. Proper taxing of pesticides is required as an instrument of Integrated Pest Management (IPM) policy. The financing of monitoring and control may be assured by a targeted cess on pesticide products. The government should be giving increased emphasis to provide an incentive system including the use of economic instruments in reducing uneconomic pesticide use and promotion of market mechanisms for the production of food and fiber with reduced pesticide use and safety measures or risk reduction.

Public Awareness on True Cost of Pesticide Use

The true costs including external costs of pesticides must be made explicit to everybody for the benefit of the common people and the economy. Hiding such information will cause unnecessary risks for the Pakistani people and endanger the competitiveness of Pakistan's exports in the international markets.

Institutional Reforms

The government of Pakistan may create an enabling environment for transforming the existing pesticide market into a market for crop protection information. In this regard the role of extension staff and NGOs in farm level extension work has to be strengthened. The government should set targets for environmental quality and human health related to pesticides use in collaboration with ministries of Agriculture, Environment, and Health. A proper national monitoring and surveillance system also needs to be established.

Capacity Building

The government should support capacity building in economic analyses of pesticide use and assessment of externalities. IPM may be taken as a farming system approach rather than a commodity approach. Instead of having a centralized research system, IPM research should agree on a common ecological framework in support of local decision-making. The national IPM Programme (Nat-IPM) may be strengthened. Substantial increases in the allocation of financial resources to promote IPM methods in crop protection need immediate attention at planning and policy levels. Implementation of farmer-led IPM approach could help in achieving the production, income, health, environment, and equity goals.

Comments

The authors have examined a very important issue. How the use of pesticides in cotton has increased over time and how it has led to the occurrence of huge negative externalities to the people of the growing areas without a corresponding increase in its yield points to the gravity of the issue. Using a large and diversified set of data obtained through field surveys and case studies, and records of hospitals, dispensaries and veterinary clinics, they have estimated and evaluated (by applying the methodology developed by the Hannover University Pesticide Policy Project) the cost of externalities to the society in terms of human health, crop production, and general environment. Large monetary estimates of externality costs to the residents of the cotton zones considered are reported in support of their claim. It does account for a good effort.

Needless to say that an adequate quantity of reliable data is sine qua non for such an evaluation. To this end, the methodologies of surveys and case studies are not adequately explained in terms of sample size, selection of sample respondents, coverage of growers and non-growers, etc. Similarly, the analytical framework applied is referred to be based on HU-PPP. The nature of the study warrants discussion of this analytical framework even if in very brief form as its original source may not be readily accessible to all the readers.

The authors have measured production losses caused by excessive sprays of pesticides by comparing experimental with farm-level yields of cotton. This approach is likely to have caused upward bias in production losses. Instead, the comparison of yields of progressive or efficient farmers with those of the general farmers could have been a more valid approach to estimating production losses.

The author's forceful emphasis on reducing the present use of pesticides may be justified in the face of colossal loss to the society. The use of pesticides may have exceeded the optimal level, as the number and dozes of sprays are reported to have both increased significantly overtime. However, the researchers have not been able to state what is the optimal number of sprays and the quantity of pesticides for information of the stakeholders. Further, the authors are also right in advising enhancement of farm-level prices of pesticides to reduce their rate of application. In my view, a concrete recommendation about how much reduction in use of pesticides is required and what increase in their prices can be effective in achieving it was needed for the benefit of all concerned with the scenario under focus. Making use of the price elasticity of demand for pesticides could have enabled the authors to estimate the accurate impact of a given increase in price on their consumption. Despite the need of such additional analysis, the study has a useful message.

Mohammad Ali Chaudhary

Quaid-i-Azam University, Islamabad.

Authors' Note: The authors express their sincere thanks to the Technical Experts of FAO Global IPM Facility, Rome, Italy, to the Representative, FAO, Pakistan, and to International Consultants, Pesticide Policy Project at the University of Hannover, Germany, for financial and technical support and valuable comments/suggestions.

REFERENCES

Ahmad, I., and A. Poswal (2000) Cotton Integrated Pest Management in Pakistan: Current Status. Country Report presented in Cotton IPM Planning and Curriculum Workshop Organised by FAO, Bangkok, Thailand. February 28-March 2.

Hasnian, T. (1999) Pesticide Use and Its Impact on Crop Ecologies: Issues and Options. Sustainable Development Policy Institute, Islamabad. (SDPI Working Paper Series.)

Irshad, M. (1999) Implications and Management of Insecticide Resistance in Agricultural Pests. Pakistan Journal of Biological Sciences 2:4, 1650-1654.

Jabbar, A. (1988) Insect Resistance to Insecticides in Pakistan. Status Paper PARC, Islamabad.

Knedel, M., and R. Boettger (1967) Kinetic Method for Determination of Pseudo Cholinesterase (Acetylcholine Acytylhdrolease) Activity. Klin, Wochdenschr 45:6, 325-327.

Matin, M. A., and A. Jabbar (1988) Insect Resistance to Insecticides. ERL, Technical Bulletin 1. ERL, NARC, Islamabad.

Pearce, D., and R. Tinch (1998) The True Price of Pesticides. In W. Vorley and D. Keeney (eds.) Bugs in the System--Redesigning the Pesticide Industry for Sustainable Agriculture. Earthscan, London, 51-93.

Pimental, D., H. Acquay, M. Biltonen, P. Rice, M. Silva, J. Nelson, V. Lipner, S. Giordane, A. Horowitz, and M. D'Amore (1992) Environmental and Economic Costs of Pesticide Use. Bioscience 42:10, 750-60.

Pimental, D. H. Acquay, M. Biltonen, P. Rice, M. Silva, J. Nelson, V. Lipner, S.

Giordane, A. Horowitz, and M. D'Amore (1993) Assessment of Environmental and Economic Impacts of Pesticide use. In D. Pimental and Ethics. Chapman and Hall, New York and London, pp. 47-84.

Poswal, M. A., and S. Williamson (1998) Stepping off the Cotton Pesticide Treadmill: Preliminary Findings from a Farmers' Participatory Cotton IPM Training Project in Pakistan. CABI Bioscience Centre, Rawalpindi.

Steiner, R. L. McLaughlin P. Faeth, and R. Janke (1995) Incorporating Externality Costs into Productivity Measures: A Case Study Using US Agriculture. In V. Barbett and Payne and R Steiner (eds) Agricultural Sustainability: Environmental and Statistical Considerations. John Wiley and Sons, New York. 209-30.

Tahir, S., T. Anwar, S. Aziz, K. Ahad, A. Mohammad, and U. K. Baloch (2001) Determination of Pesticide Residues in Fruits and Vegetables of Islamabad Market. Forthcoming in Journal of Environment and Biology.

Waibel, H., G. Fleischer, and H. Becker (1999) The Economic Benefits of Pesticides: A Case Study from Germany. Agrarwirtschaft 48, Heft 6, 219-230.

(1) The external costs were confined to the sample divisions, because: (a) these represent intensively managed 80 percent of the total cotton acreage of the Punjab; and Co) intensity of pesticide use was higher in these regions as compared with that in rest of the 20 percent cotton planted in the diversified agroecologies.

(2) The farmers of the area reported the occurrence of at least 3 such setbacks to cotton crop during the last decade.

Muhammad Azeem Khan, Iftikhar Ahmad, and Manzoor H. Soomro are working at National Agricultural Research Centre, lslamabad, and Muhammad lqbal is Research Economist at Pakistan Institute of Development Economics, lslamabad.

Table 1
Damage Costs and Damage Abatement Costs Estimated in
Different Areas

 Damage Abatement
Externality Area/Category Damage Cost Cost

1. Human Health
 Occupational Poisoning
 Pesticide Applicators Fatalities, Blood Samples Cost,
 Treatment Cost Awareness
 Campaigns, Workdays
 loss Monitoring

 Women Cotton Pickers Treatment Cost Blood Samples
 Monitoring Cost,
 Awareness
 Campaigns, Workdays
 loss

 Industrial Workers, Acute/minor Blood Samples
 Distribution, Storage ailment cost; Monitoring Cost,
 and Disposal Treatment Cost, Awareness
 Environmental Campaigns,
 Degradation Implementation of
 Safety Regulations,
 Workdays Loss

 Pesticide Residues
 Kharif Vegetables Potential Residue Monitoring,
 Externality for Implementation of
 Rejected Regulations
 Outputs

 Irrigation and Contamination Residue Monitoring,
 Drinking-water of Underground Opportunity Cost to
 Water Resources get Clean Water

 Cottonseed-oil and Rejection of Residue Monitoring,
 Cottonseed--cake Contaminated Awareness cost
 Cottonseed oil
 and cake

2. Production Externalities
 Pest Resistance Yield Loss Research and
 Extension, more
 Pesticide use cost

 Domestic Animal Production Separate Fodder
 Poisoning Loss, Mortality Crops, Awareness
 and Treatment cost
 Cost

 Wild Honeybee Loss Loss of Honey Research to Prove
 and Yield Loss and Prevent Honey
 Due to Bee Losses
 Pollinator Loss

3. Environmental Externalities
 Wildlife and Birds Loss of useful Ecosystem Analyses
 Misects and to Restore Natural
 birds Fauna Balance

 Loss in Bio-diversity Stagnating or Ecosystem Analyses
 Declining to Restore Natural
 Productivity Balance, Increased
 Pesticide Use

4. Health/Environmental Health and Establishment of
 Monitoring Environmental Regular residue
 Damages Monitoring System

5. Public Awareness Complexity to Campaigns on Safe
 Campaigns Develop General and Judicious use
 Recommendations of Pesticides

Table 2
External Cost of Pesticide Use in the Major Cotton Growing Areas
of Punjab

Types of External Cost Effects Identified Value
 (Million Rs)
1. Human Health
 Occupational Poisoning

 Pesticide Applicators Fatalities, 266.70
 Treatment Cost,
 Workdays Loss

 Women Cotton Pickers Treatment Cost, 765.00
 Workdays Loss

 Industrial Workers Acute/Minor Ailment 0.64
 Cost

 Distribution, Storage Environmental/Health
 and Disposal Problems NQ (a)

 Pesticide Residues in Food
 Chain

 Kharif Vegetables Potential 72.3
 Externality for
 Rejected Outputs

 Drinking-water Opportunity Cost of 14.3
 Labor to Get Clean
 Water

 Cottonseed-oil and Potential 23.3
 Cottonseed-cake Externality for
 Rejected
 Cottonseed-oil and
 Cake

2. Production Externalities

 Pest Resistance Yield Loss and More 5667.0
 Pesticide use Cost

 Domestic Animal Production Loss, 1304.5
 Poisoning Mortality and
 Treatment Cost

 Wild Honeybee and Loss of Honey and 63.2
 Sunflower Production Yield Loss Due to
 Losses Pollinator Loss

3. Environmental
 Externalities

 Wildlife and Birds Loss of useful NQ
 Insects and Birds
 Fauna with
 Increased use of
 Pesticide

 Loss in Bio-diversity Increased 3745
 Dependence on
 Pesticide use to
 get Stagnating or
 Declining
 Productivity

4. Health/Environmental Cost of Toxicity
 Monitoring Analyses 4.8

5. Public Awareness Cost of Public 14.1
 Campaigns Extension Media and
 NGOs

Total 11,941

(a) NQ = Effects yet not quantified.

Table 3
Proportion of Female Pickers by ChE Activity Percentage Groups
during Pre-spray and Post-spray Season in 2000

 Percent Activity of ChE

 Normal Mild Moderate Considerable
Surveys (88-100) (76-87) (65-75) (514)

Pre-season 71 15 7 5
Post-season 10 16 13 1

 Percent Activity of ChE

 Hazards
Surveys (00-50)

Pre-season 2
Post-season 42

Table 4
Benefit-cost Ratio of Pesticide Use in the Cotton Zone of Pakistan's
Punjab

Total Costs per Year 18611 Million Rupees

Pesticide Costs (Chemical + Spray) 7044 Million Rupees
External Costs 11567 Million Rupees
Benefit 8069 Million Rupees
Benefit-cost Ratio without External Cost 1.14
Benefit-cost Ratio with External Cost 0.43

Fig. 4. Percent Share of Different External
Costs in Total Pesticide Use

Occupational Poisoning 9%
Residues in Food Chain 1%
Pest Resistance 49%
Residue Monitoring 1%
Animal Poisoning 11%
Biodiversity loss 28%

Note: Table made from pie chart.