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ECONOMIC ANALYSIS OF INPUT TREND IN COTTON PRODUCTION PROCESS IN PAKISTAN: Objectives of the Study

The higher return is an incentive for the grower to put more area under cotton. However the increasing cost of inputs and lower crop return have forced the cotton growers to switch over to other crops like rice etc.There had been upward and downward trend in yield and production also.
Production depends on area under cotton and per acre yield. Although, the per acre cotton yield have experienced increasing trend from 1947 to 2008. However the after 1983-84 the yield trend increased at higher rate. The intensity of pest attack and adverse weather conditions are two major sources of yield reduction. Pakistan cotton production and yield since 1947 are shown in graph-3 and graph-4 respectively. read only
Significance of Cotton Production Inputs
The cotton production process involves use of various inputs including land preparation, inputs like seed, irrigation water, fertilizer, pesticide and labor etc. Overtime, the prices of these inputs have increased resulting higher cost of production. In addition the cotton crop is susceptible to various pests attack and natural hazards like rain, hail storm and humidity etc. Different studies have been carried out by experts regarding input impact on cotton yield and production. The individual input effects studies have also been conducted. Sabo E, Daniel j.D 2 while carrying out economic analysis of cotton found that among the cost of inputs variables, the highest cost was of labor ($453.68). Khuda bux, et al. while analyzing the factor affecting cotton yield found the cost of plant protection measures had a positive effect on yield and this variable was highly significant with coefficient of 0.224. Pakistan cotton yield remained sluggish up 1960. Afterward when green revolution was introduced and chemical fertilizers and new cotton varieties were introduced, the yield started increasing. During 1983-84 heavy rains badly damaged the crop and the country had to import cotton. During 1986 and up to 1992 the rate of textile mills installation increased at an increasing rate. The increasing trend of input use coupled with partial crop mechanization increased per hectare cost of production. It has been confirmed by various field studies that although the appropriate use of inputs has resulted in increased yield, but the farmer profit share have gradually been reduced.
The cotton support price trend, prices of inputs and weather play crucial role in the cotton production process. The production process involves different inputs. Every input has its influence and plays a vital role in this process. The basic and foremost is land and its preparation has key influence on the crop condition. The other inputs include; seed, irrigational water, fertilizer and plant protection measures etc. all these inputs also play crucial role cotton production process. The cost of these inputs has influenced the cotton production in Pakistan. In order to identify the influence of these inputs the present study has been undertaken.The foremost purpose of the study is to analyze the most critical input regarding its cost over the time period. The main objectives of study are:
The purpose of the study is to analyze the overtime input cost trend for crop production. However, the major objectives of the study are:
1    To study the overtime cost of inputs trend in the cotton production process.
2    To find out the cost benefit of overtime cotton production process.