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Analysis of Economic Implications for Cotton Production in Southern Punjab of Pakistan

Dilshad Ahmad

Abstract


The study was conducted in core cotton zone of Punjab to find out the cost and return (profit) of cotton cultivation in district Rahim Yar Khan, Punjab Pakistan during the year 2012-13. Economic analysis of cotton production and financial impact of cotton growers in cotton cultivation was examined in the study. A pretested developed questionnaire was employed in the study for directly collection of two hundred and ten sample size data of cotton farmers. Profitability of cotton cultivation of cotton farmers evaluated with estimated benefit cost ratio 1.238. Cotton profit function was examined with an econometric model which points out price of output and quantity of output positively affect profit while the cost of inputs negatively affects profit of the cotton cultivation. Model inputs cropped area, land preparation, seed, fertilizer, pesticides, irrigation, and labor are statistical significant and positively affects cotton production. Stable and supportive output prices of cotton production prerequisite for increasing output productivity and profitability for cotton farmers such type of measure will encourage farmers to improve farming practices and perk up the socio-economic status of farming community.


Keywords


Benefit cost ratio, Cotton, Profit, Yield, Punjab, Pakistan.

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References


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