This paper considers genetically modified (GM) seed adoption decisions by farmers in a developing country under two alternative information regimes (with and without perfect information regarding production conditions) that allows the monopolist producer of GM seeds to either practice perfect discrimination or uniform pricing. Under each regime we analyze two scenarios: when the government can and cannot credibly commit to the announced form of welfare enhancing intervention in the domestic seed market.

Innovations are fast changing the agricultural landscape driven by the increasing need to shift towards sustainable practices without sacrificing the productivity and profitability of farming. Innovations in technology, institutions, processes, and products have contributed to the growth of agriculture, globally and in developing countries including India and Africa, as observed in the cases of green revolution in cereals; and gene revolution in cotton.