Economic Investigation of cotton production in Afghanistan

Background and Goal:

 Cotton is one of the industrial crops whose product is used and exploited in various industries and provides many products for human life. Cotton fibers are used in the textile industry, its grains in the lubricant industry, and its additives, including flour and pulp, in animal feed. The area under cotton cultivation in 2018 is about 31.8 million hectares in the world and 36 thousand hectares in Afghanistan, 1440 hectares in Baghlan Afghanistan province. Cotton in Baghlan province ranks sixth among irrigated crops and first among industrial crops in terms of cultivated area. Since 1978, the area of this crop in Baghlan province has decreased by about 80%. Therefore, an economic investigation of cotton production in Baghlan province of Afghanistan was conducted in this study.

The statistical population of this study was cotton growers in Baghlan province of Afghanistan. 132 samples were selected using stratified random sampling method. In this study, in order to economically evaluate cotton production, economic evaluation indicators including total income, total cost, gross return, profit, return on investment, profit to cost ratio and cost of the product were examined, as well as the optimal amount of input consumption. Production lines were also specified through the production function.

The results of the economic survey indicators of cotton production in Baghlan province of Afghanistan show that the average cotton yield is 3917 kg / ha, the average income is 213055 AFN, the average cost of production is 118075 AFN and the average profit is 94980 AFN. And the return on investment is 81.9% per hectare. The results of cost-benefit (B/C) analysis of cotton production also show that the average income per Afghan spent on cotton production is 1.8 AFN. The production function estimation results also show that the transcendental production function form is the superior form and most of the coefficients are significant. And insecticides have a negative effect on production.

In general, it can be said that cotton cultivation in Baghlan province of Afghanistan is a profitable activity and the consumption of all production inputs except insecticides and herbicides is optimal. Therefore, in order to increase the income of farmers in Baghlan province, it is suggested appropriate planning and policy to develop the area under cotton and the optimal use of insecticides and herbicides through price policies as well as through promotional activities.