Institut für Ernährungswirtschaft und Verbrauchslehre

Opportunities and constraints in the production and marketing of cotton in Pakistan

Pakistan is an agricultural country, as agriculture contributes about 23 percent in the Gross Domestic Product (GDP). Cotton is most important cash crop as it contributes nearly 10 percent in the agricultural GDP and is source of about 60 per cent foreign exchange earnings. Cotton also provides raw material to local textile industry and provides emplo yment to 38% of the total workforce in the manufacturing sector. The per acre cotton yield in Pakistan is 781 kgs per hectares, while in other cotton producing countries it is much higher e.g. Israel 1,818 kgs, Australia 1,802 kgs, Syria 1,571 kgs, Mexico 1,312 kgs, Turkey 1,289 kgs, Greece 1081kgs, USA 951 kgs and Egypt 939 kgs. 

The low per hectare production shows that to carry out cotton production efficiency analysis is most important, both technical efficiency and allocative efficiency. Technical inefficiency arises when actual or observed output from a given input mix is less than the maximum possible, while allocative inefficiency arises when the input mix used is not consistent with cost minimization and the scale efficiency is related to size of the farm.

So to highlight the factors responsible for inefficiency is extremely important, as focus on these constraints will help to decrease inefficiency and increase the per acre productivity. Farmers are facing with a number of risks till marketing of their crops including unexpected factors like inflation, high price of energy, unfair competition and speculation in open market by big cotton buyers. The marketing system of cotton crop is extremely important and transaction cost analysis will help that how the small producers are marketing their produce. The cost of production is critical wherever cotton is being grown — it can keep a grower in or kick a grower out of cotton production, hence to estimate efficiency of important cash crop like cotton is extremely important. In the present study the cross sectional data will be used to carry out the efficiency and the marketing analysis which will give snapshots regarding cotton production and marketing efficiency to policy makers, researchers, extension agents and most importantly the cotton producers.


Beginn: 01.10.2006
Förderer: DAAD
Projektleitung: Prof. Dr. Awudu Abdulai
Bearbeitung: Akhter Ali, M.Sc.