Comparative advantage of cotton crop over other crops in Pakistan

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Director, Directorate of Marketing & Economic Research, Pakistan Central Cotton Committee, Multan, Pakistan.

Corresponding author =


Cotton being a cash crop contributes significantly to the national exchequer of Pakistan. It accounts for 1.5 percent in GDP, 7.1 percent in agriculture value addition and Cotton and textile exports fetched US$ 10.22 billion in 2014-15 (Economic survey-2014-15) . Cotton crop covered an area of 2.96 million hectares in 2014-15 and produced 13.98 million bales. This paper highlights the economics  of  cotton as  compared to other competing crops in Pakistan. Cotton crop, competes with rice, sugarcane and other crops for land, water and other farm resources in the area where the cultivation of all other crops is technically feasible. Mainly cotton faces indirect competition from sugarcane, the annual crop which keeps the land throughout the year. The farmer gives priority and takes decision on the economics of cotton and competing crops on the basis of inputs-outputs prices paid and received. The estimation of the indicators, like gross cost, gross income, gross margin, net income, input-output ratio, etc may provide the useful sights to the growers at farm level.

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Competition and efficiency within the equity markets

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Wagdy Hendy Ibrahim El-Desouky

Patco Cotton Co. Alexandria-EGYPT


As from late Eighties of the last century, what’s called technical equity markets exist as spread of internet system in which make it possible that both supply and demand for goods and services are available within 24 hours a day. But so far a little attention has been given to improving the accuracy of price determination resulting from demand for immediacy and for too much importance has been attached to the supply of immediacy ( the ability to trade at any time in the continues market ). Unfortunately, participants pay price to trade whenever they wish during trading section the components include the bid-ask spread, market impact and commissions. In addition the temporal fragmental of orders in one continuous market makes the market more opaque.

Thus for the assumption that participants demand transactional immediacy has gone practically unquestionable would some asset managers choose not paying the price of immediacy of the truly understood the cost of the service and if they had an alternative . Immediacy clearly important to a participant seeking to trade on information that has not yet been reflected in market prices and many participants most notably the mutual funds, do have to trade certain amount each day because of deposits redemptions or their cash flow needs. This does not mean however that they must be able to trade at any given  moment in the day. It  is conceivable  that  the provision  of immediacy because it temporally fragments orders actually makes it more difficult for these participants to “get the job done” at a reasonable cost by the end of the day.

On this presentation concentration will be devoted to the following topics

  • Transparency
  • Price Discovery
  • Taking decisions for immediacy demand
  • Consideration of the order flow
  • Market structure

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Seventh ‘Asian Cotton Research and Development Network’ Meeting, 15-17 Sept 2017, Nagpur India.

The Seventh Meeting of the Asian Cotton Research and Development Network was held at Nagpur during 15-17 September 2017. The Indian Society for Cotton Improvement (ISCI), Mumbai hosted the meeting together with the ICAR-CICR (Central Institute for Cotton Research), Nagpur and ICAR-CIRCOT (Central Institute for Research on Cotton Technologies). The main theme of the meeting was PRODUCING QUALITY FIBRE & DOUBLING COTTON FARMERS INCOME. Cotton researchers from public and the private sector participated. Dr. C. D. Mayee, President, Indian Society for Cotton Improvement, was the chairman, of the organizing Committee. The meeting elected Dr. Prashant G. Patil as Chairman of the Network until the next meeting. Eminent cotton experts i.e., Dr. Timorthy Dennehy, Dr Judith Brown, Dr Albert Santos from US; Dr Derek Russell from Australia, Dr Negm from Egypt and several senior research leaders from India and Bangladesh attended the meeting. The proceedings, recommendations, presentations and abstracts of the meeting can be accessed here.

Seventh Meeting of the ACRDN

Proceedings are available

The Seventh Meeting of the Asian Cotton Research and Development Network was held at Nagpur, India during 15-17 September 2017. The Indian Society for Cotton Improvement (ISCI), Mumbai hosted the meeting together with the ICAR-CICR (Central Institute for Cotton Research), Nagpur and ICAR-CIRCOT (Central Institute for Research on Cotton Technologies).

The main theme of the meeting was  “PRODUCING QUALITY FIBRE & DOUBLING COTTON FARMERS INCOME.” Cotton researchers from public and the private sector participated. Dr. C.D. Mayee, President, Indian Society for Cotton Improvement, was the Chairman of the Organizing Committee. The meeting elected Dr. Prashant G. Patil as Chairman of the Network until the next meeting. Eminent cotton experts like Dr. Timorthy Dennehy, Dr Judith Brown, Dr Albert Santos from US; Dr Derek Russell from Australia; Dr Negm from Egypt and several senior research leaders from India and Bangladesh attended the meeting.

The proceedings, recommendations, presentations and abstracts of the meeting are now available at the ICAC website.


Abstract                                                                         Back to Table of contents

Cotton stalks and cotton ginning trash both present management problems for growers and processors within the cotton industry.  One option, now being considered, is to use these materials to produce ethanol fuel.  One of the biggest influences on the viability of producing ethanol, however, is the cost of the material used.

To identify if cotton wastes were viable feedstocks, a model of the cost to collect and transport cotton stalks and ginning trash was developed on a spreadsheet.  Two variables were allocated triangular probability distributions: the biomass yield (tonne per hectare), and the biomass transport weight (tonne per transport unit). Sensitivity analysis was carried out by varying the contract rates, transport rates, and transport distance.

The best collection method identified, was to forage harvest the cotton stalks into boll buggies, and transport it (over an assumed 50 km) compacted as modules or pallets; costing $30-$40/tonne, ($0.10-$0.13/litre of ethanol produced). Sensitivity analysis indicated the contract rates had the biggest effect on collection costs, transport rates had the least effect, and increasing the transport distance to 100 km increased the cost of the best collection method by $6.00/tonne ($0.02/litre of ethanol produced).

It was concluded that given the collection costs identified and current estimates of plant economics, the operation of a lignocellulosic ethanol production plant using cotton stalks or cotton ginning trash, was a viable proposition.

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Cotton as illustration of women’s capability

Topical issue of women’s performance in agriculture

Given the phenomenon of the feminization of agriculture in many countries, particularly where the economic development is attracting men out of agriculture, the issue of the performance of feminized agriculture has gained topical importance. The phenomenon of feminization is even observed with some concern because women’s performance used to be reported low.

Gender comparison of performance used to be biased

The observed performance of women has been frequently lower to that of men, but it is not because they are women, but because they do not produce similarly to men. Particularly, women used to have less, if not much less access to production factors.

Scientific literature has provided sufficient evidence about the issue of access and many international organizations (FAO, the World Bank…) have been advocating to improve the access to production factors by women, as a means to improve the performance of the whole agricultural sector.

The current international advocacy lies on the assumption that when women have improved access to production factors, the increase of their performance will result. Such a phenomenon has nevertheless seldom be observed and assessed.

A paper very recently available online is compensating for the lack of evidence mentioned above. Download of free full text is still possible up to the number of downloads allocated to the authors; so it’s first asking, first served. At the time of publishing this post, there were 38 eprints remaining.

Cotton Research enters to a period of “golden” opportunities

With the recent completion of draft sequencing of diploid cotton Gossypium raimondii and G. arboreum genomes published in Nature Genetics, and the first “gold-standard” version of G. raimondii genome published in Nature, cotton research community enjoyed the pick of many seminal research results that have provided a glorious opportunity to study orthologous and paralogous genes and gene families in allotetraploid cotton.

These successes and great achievements in ancestral diploid genome sequencing further resulted in decoding of the representative genome of widely grown allotetraploid Upland (G. hirsutum L.) cotton, Texas Marker-1.

Two independent research papers published in Nature Biotechnology by Zhang et al. and Li et al. in this week issue described the complex allotetraploid TM-1 genome that further entered cotton research to an era of “golden” opportunities providing the first insights into allotetraploid cotton genome structure, genome rearrangements, gene evolution, cotton fiber biology and biotechnology that will help to rapidly translate the genomics “knowledge” to an “economic impact”!

Congratulation to all cotton community with these latest achievements, high impact journal seminal publications, and hard work to foster cotton research!

The Chinese policy challenge of making farming and cotton growing economically more attractive

For emerging countries, and to a lesser extent for developing countries, the economic transition is attracting farmers out of agriculture. Farming population is reducing, following the trend that developed countries has known and where farming populations represent a few per cents of total labour.

Although farming populations in emerging and developing countries are still high, governments are showing concern for the threat of missing farmers. In China, this concern is translated into the political question of “who will farm tomorrow in China” for several years and a new policy has been recently set up on an experimental basis.

To people involved in the cotton business, China is well known for ranking first in production, in consumption and in imports. China is clearly a price-maker in the cotton market. From the agronomic perspective, it is worth emphasizing that China has overcome the challenge of feeding and clothing 18.6% of world population while accounting only for 7.0% of world arable land.

Productivity has been key in the above-mentioned status of China; it was the outcome of long term investment in research and in support to technology application by producers, although undesired effects have been observed. In terms of remarkable outcomes in cotton cultivation, plant growth regulation has been in practice for more than two decades; hybrids have been commercially launched in late 1980s and extensively adopted since then; a specific transplanting technique is generalized in cotton provinces of Yangtze River Valley because it enables to grow cotton after winter cereal, making China one of the rare countries where cotton crop in integrated into a double-cropping scheme. In the area of biotechnologies, Chinese researchers have carried out its particular technique of gene transfer through pollen tube in early 1990s; they are handling today a large portfolio of genes, albeit its composition is hard to capture from external observers. However, in terms of undesired effects, the efficiency of over and under fertilizing could be questioned, because of negative economic and environmental impacts. In addition, the cotton seed market has become so messy that producers are paying high prices without certainty of getting quality seeds of the expected varieties.

In China, owing to the vibrant two digit economic growth for almost three decades, agriculture is declining relative to other industries because it is becoming less economically attractive. Its annual growth has been less than 5.0%, although much higher than the population growth rate of less than 0.6% since year 2000. In 2010, agriculture accounted only for 10% of GDP, 37% in employment, and for the first time, there were less people living in rural areas than in cities. The income gap between urban and rural labor has continuously widened since China has committed itself to a market economy: in 2011, the income ratio was 3.6.

With reference to the tiny farm size (0.4 ha on average) and to the rates of durable consumer goods (e.g. 63% of rural households possessing washing machines), the fate of Chinese farmers is much better than the one encountered in many emerging and developing countries, but this is the outcome of large scale of commitment in off-farm activities. Farm heads, i.e. men in Chinese context, firstly involved, followed later on by their sons so that agriculture has been perceived as aging and feminized although more recently daughters are catching up in committing to off-farm activities. Because cotton growing is more demanding in terms of labour and cash flow –while labour cost has substantially increased– the phenomenon of moving out of agriculture could be exacerbated in some areas. Our surveys in Hebei province, a traditional cotton producing province, show that farmers’ children are seldom involved in farming activities, hence raising the issue of who would take over farming in the next future.

The concern of maintaining some rate of farming people in China –although what this rate should be is not yet clarified, to my knowledge–, asks for reversing the trend of income disadvantage to farmers and more globally for restructuring the agricultural sector; but such a process will need time because several particular and structural features could only evolve gradually. One major feature is related to the residential registration scheme –or “Hukou”– which distributes Chinese people between urban and rural status according to their places of birth, if not the birth places of their parents. A Chinese citizen can seldom shift from one status to the other, notably from rural to urban. Consequently, most rural people migrating more or less temporarily to cities cannot enjoy welfare schemes there –while these schemes are usually missing in their rural hometowns. A second major feature results from the public ownership of land through which only land use right has been allocated to farming families (for 30 years) including to those which have actually given up farming and which are renting out land informally. Dramatic changes have already taken place, but a lot remain: primary and secondary school has been made free in rural areas since 2006; all taxes on farming have been waived in 2007; and in November 2013, for the first time, the revision of the “Hukou” system has been mentioned at the highest political level. The issues of upgrading health care and setting up a pension scheme for farmers are still overlooked.

The Chinese government has started coping with the issue of “who will farm in China” in 2007. In 2012, it introduced the concept of rural and city integration though a “blue book” which has been updated in 2013. In short, this concept points out that development in rural communities and cities does not imply similar economic model. More specifically, such model in rural areas should take jointly agriculture, farmers and rural communities into account.

In the framework of this integration concept, China has launched an experimental program of “family farmers”. The introduction I made in an open session at the last 72nd ICAC Plenary session is attached below, as well as the analysis by one panelist which gave some international perspective from the Chinese case.

Similar programs might be conducted elsewhere; all cotton producing countries would benefit from getting informed of.