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ECONOMIC ANALYSIS OF INPUT TREND IN COTTON PRODUCTION PROCESS IN PAKISTAN: INTRODUCTION

ECONOMIC ANALYSIS OF INPUT TREND IN COTTON PRODUCTION PROCESS IN PAKISTAN: INTRODUCTIONPakistan Cotton World Scenario
Agriculture is one of the major sectors of economy in Pakistan. The economic development of Pakistan mostly depends on agriculture. At the time of independence agriculture was contributing major share of the GDP. As the industrialization progressed, the position of agriculture sector was dominated by service sector and at present, agriculture share ranks third in the GDP of Pakistan. Agriculture sector also feeds/provides raw material to the domestic cotton industry. The agriculture sector contributed 20 % of GDP during 2007, whereas during 2008-09 its contribution was 21.8 % (Pakistan Economy survey 2008-09). Agriculture is the main source of employment in the country. The development report of UNDP for the year 2007-08 disclosed that 65 % of Pakistan population lives in rural areas. In rural areas agriculture in the only source of their employment and 44.7 of the total employed labor force in the country mainly depend on agriculture (Pakistan Economic survey 2008-09). Pakistan can be called the land of cotton. Cotton fabrics dates 3000 BC and has excavated in the Indus valley of Pakistan. There are four major cotton producing countries of the world. They are china, USA, India and Pakistan. Pakistan is world’s fourth cotton producing country. Pakistan cotton yield comparison with world leading cotton producing countries is given in Table-1.
Pakistan yield comparison with China indicates that there is a wide difference between both countries. During 2005 the China cotton yield was 38.22% higher and it was lowest higher whereas the maximum yield difference recorded was during 2007 which was 50.30 percent higher.
Pakistan yield also experienced lower tendency than that of USA. For the period from 2005 to 2009, the USA cotton yield remained 18.80 percent higher. The highest difference was during 2007 and it was 34.47 percent. During 2005 to 2009, Pakistan yield showed higher trend than that of India. The minimum higher percentage was 14.24 and the maximum yield difference was recorded during 2005(34.54 percent). The yield comparison is also produced in graph-1
Pakistan cotton area as compared to the leading cotton producing countries remained lower than China, USA and India. The area Comparison is given in annexure-1
Cotton – Domestic Scenario
There are two major crop season in Pakistan, Rabi and Kharif. Cotton is Rabi crop and mostly grown in Punjab and Sind province. Cotton is cash crop and its value addition in agriculture is 7.3 percent and 106 percent to the country Gross Domestic Product. (Pakistan Economy survey 200809). Over the time period from 1947 to 2008, the area under cotton and per acre yield has increased at higher rate. The area has increased due to reasonable returns to the cotton growers. The per acre yield has increased due to introduction of new seed varieties, better and latest mechanized land preparation techniques, insect and disease control due to efficient plant protection measures and mechanical cultural practices etc. The following graphs exhibit overtime Pakistan cotton area, yield and production.
The graph-2 indicates that area under cotton has increased but not at constant increasing trend. The area under cotton depends on the previous year crop conditions. read only

Table-1 Cotton Yield С ompatisan wifti Other Countries Lbs/acre

Year China India USA Pakistan < China > India < USA
2005 1,031 417 831 637 394(38.22%) 220(34.54 %) 194(23.35%)
2006 1,149 462 814 592 557(48.48 %) 130(21.99%) 222(27.27 %)
2007 1,159 494 879 576 583(50.30 %) 82(14.24%) 303(34.47 %)
2008 1,188 467 813 603 585(49.24) 136(22.55%) 210(25.83%)
2009 1,177 451 782 635 542(46.05 %) 184(28.98%) 147(18.80%)