Production and marketing of cotton in West Pakistan
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Authors Malik, Muhammad Iqbal, 1932-
Publisher The University of Arizona.
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Link to Item http://hdl.handle.net/10150/551366 PRODUCTION AND M ARKETING OF COTTON ; v ■ ; I N W E S T P A K I S T A N /
: ' - by ' '■ ' .
Muhammad Iqhal Malik;
- ,■ >' - . - _ - ■/-_ 1 ■: , ; A Thesis Submitted to the: Faculty of the
DEPARTM ENT OF AGRICULT URAL ECONOMICS \ I ;■ '■ i:- In Partial Fulfillment of the Requirements
For tho Degree of
MASTER, OP,S CIEn Oe '
Ih the Gradtiate College
UNiyERSlT Y O F ARIZONA
- v X ■ 1
, 1959 , 1
•' •
• u. i 1,1. 9 / / 9 T 9
Btr^TSteENT ,BY: A u t h o r
This thesis has beeh submitted in partial fulfillment of require ments for an advanced degree at the University of Arizona and is deposited in the University Library to be: made available to borrowers, under rules of the Eibrahy. ' ' /. ' ;
Brief quotations from this thesis are allowable without special permission, provided that accurate aekhowledgment of source is made. Requests for permission for extended quotation from or reproduction of this manuscript in whole or in part may be granted by the head of the major department or the Dean of the Graduate Coliege: when in their judgment .the propos ed use of the material is in the interests of scholar - ship. Ih all other instances, however, permission must be obtained from the author.
■s ig E eda
APPROVAE BE THESIS DIRECTOR
This thesis has been, approved on the date shown below:
Charles A. Wilmdt Date Assistaht Professor of Agricultural Economics ' AC KNOW LED GMENTS
The author wishes to express his sincere appreciation: to the Council on Economic and Cultural Affairs of New York for the generous scholarship which made it possible for him to undertake this work,, and also to the University of Arizona for the graduate tuition scholarship which relie.ved him: of a burdensome financial problem. W -Y 'A' yn' n :-.-.- -. ; . ■; To Dr. A. B. Lewis, Associate Director for Agricultural Econo- mics of the Council on Economic and Cultural Affairs, the author would like to extend special recognition for recommending him to the Council for graduate study in the United States and for his unfailing cooperation and inspiration, v ■ ,1 -x' ;'' ;
fhe author feels deeply indebted to Dr. Charles A, Wilmot, his major profes:S.or and thesis director, for his. constant guidance and a ssist ance in developing the ideas and analyses in this work and also for ac cdmpanying him personally on an extensive field trip through the cotton belt of the United Stat es* - •; , 1. . .
Grateful thanks are als o extended to Dr* R. E. Seltzer, Head of the Department of Agricultural Economics for his valuable help and sug gestions. ;
. To Drs. M. M, Kelso, Thomas Stubblefield, and G. L. Gifford Special appreciation is expressed for their: critical evaluations of the " Rnalmantiscript* ’ •: ' . - -c- %
The author also acknowledges his debt to Mr. Joseph H. McClelland, Information Specialist, Agricultural Extension Service, University of Ari zona, and to the Editor of the Cotton Trade Journal of Memphis , Tennessee, for providing the photographs which were used: in the thesis. ‘ : ^
Special thanks ar e extended to Mrs. Helen Dely for editing and typing the manuscript.
. Last, but not least, the author wishes to express genuine apprecia tion to- Mr. Joseph C, Shirley, Foreign Student Adviser, fOr the pleasure which his cooperation and friendship have brought throughout the. author's stay at the University of Arizona. Page
List df taMes» „ e >•...... •9 0 O 9 e o o o @ o vi
List of Figures. „ ; „ V . ... o o o « o viii
CHAPTER ' v:
' /. . AT : INTRODUCTION. ,, ► e > > d, -.#■
The Problem^ . . » o » . . , . . . 1 Obj ectives» * » • @ @ ® « « • * « » »* » » 2 Method, of Study, > . , , >v » ®o o , « , 2 Liz^itatious of Study , , , ® ® . p o o 3 .
THE COUNTRY, v.. i. .-......
Geographical Description...... 5 ‘the tic on.orn.y.. • «.. . ..« . * ■. « *.. •» • » *,.. • . > .. * .. . 9 History of Cotton Culture in Pakistan...... 10
PRODUCTION OF COTTON IN WEST PAKISTAN.
Production Areas...... v. . . ,. . 12 Trends in. Acreage and Yields. .. 12
Varietal Distribution...... 9 e ® »; ; « 9 o ’ , e 19
Methods of Cultivation . . .. e 0 9. 9 0 0 0 0 9 0 0 9 0 0 9 0 22 Land Tenure System. „ ...... 27 , Pests and Diseases ...... ; .... . 29 Salinity and Wat e rlo g gin g . ., . . . . > 32
Methods of H a rv e st...., , O' o o o ‘ o 34 Production Credit...... i . .... 36 Costs of Production. . 2. o...... d » . . . 39 TABLE OF CONTENTS (coat'd)
i r CHAPTER Page
.MARKETING COTTON IN WEST PAKISTAN'* 43
Mair$:et Organisation* . . . , , . . . , 43 ■ .Functioits of Cotton. Marketing ... „ «,. „ „ 49 Marketing and Related Practices of Growers-. „ 64 FunctidrisxPerformed by Ginners. . . . 66 ' Services Performed by Other Functionaries. . . 77''. Operation of the Karachi Market...... 80
.^S'^lSt.S'* . * . o . . . . * * » . * * . » o...... o * a '• * . o! » « * ■ a J • » 83
Jt*roble m s . . . . . a * » ...... -* * -« . * a ...... * . *-.*. * 89
V PRODUCTION AND MARKETING OF ARIZONA . .COTTON-^ COMPARATrVtE JlNAEYSlS:a.>:.' a.a..v 106
ProdnCtion...... 108 Marketing...... « » 118
. ¥i;\ S WM^RY AND;^ . 130
VII RECOMMENDATIONS...... * . . 183
bibliography...... 139
■ L" v;':: APPENDIXi*:, ...■... G.,.. . 142
Y. ''"LIST';OF TABLES:'.;'
Table : : ; ' . Page
1. Comparative .Cotton Yields, Short Staple. Cotton, West Pakistan; Arizona and California, United S td C e S , 1^5l'"58o > • » e *• e>< • * * ■ e e * e e o o e e. ,e •, *, ,9 90* o e e e » 1 9
2. Costs of Production of Desi and American Type . Cottons 3 Lyallpur, Jallim.der, and Gurdaspur Dis- trictS:,.. 19SSi” i 933* '„• > y *.• .* ,# * > » >■ .•»»«■».» » ♦ •# #% ? •. -y.. ■ *40 .
3„ Per Acre Cost of Producing Cotton in Lyallpur ■ District, 5-Year Average, 1935-1940. , ...... , ...... 41
4. Cost of Prodneing Atoerican Gotton in Lydllpur, , Sar godba, 1^6# gonie r s.nd' Mnltan! Dist , ’West : ' ■ P a k is ta n i Per. Acre, 1957-58. , ...... '42
5. Location .of 72 Secondary Cotton Markets, by D is trict, West Pakistan, 1959...... * • > «,...... , . 45 . . ' ; • . . v .: . v ^ : 6. Costs of Transporting One Bale Equivalent of Cotton from.. Village near Lyallpur Market to , Karachi, W est Pakistan, 1959...... , . . , , . . >. .. . 84
7-. Marketing Charges for One Bale (392 lbs . net . ’• < weight) Equivalent of Cotton at Lyallpur Market,, • 1 . West Pakistan, 1959...... ■ 85 .
8. Cost of Ginning Cotton, per Bale, Based on Aver- ; age of Eight Gins, West Pakistan, 1959...... 86
9. Total Merchandising' GpSts Involved, in Moving One Bale of Cotton or its Equivalent from Village near Lyallpur to Karachi, West Pakistan, 1959" ...... 88 LIST GF TABLES (coat'd)
Table Page
10. Acreages Devoted to Gotton and Sugar Caae in the Former, Punjab Province, West Pakistan, 1947--1955 94 v 11. Cotton Acreage by Counties and Total Productidn, ' • Arizona,. 19 oS...»*. . . ® ® ...... *...... ■...... 111
12' Estimated Cost of Producing Upland Seed Cotton :-Per ll,cr,e, ,A.ri^dna;, 1953.. ...^ * • • • « . . . 119 ■ LIST OF FIGURES
Figure : : . ' . . ’ ' Page
i. Map pi Jr^aFiaiaix • * • • . »■ ® . . . * . *. »*. . »«.« . . . * . . ■» * »>. . . 7.
Z.', Land utilization in Pakistan, byclassification and acreage, 1 -05-7.» * . . • ® . «■ *. . ..•.. . ».* . * « ® . * . * . * » * .. * . « . . 8
, Cotton map of West Pakistan showing divisions and diStrlets > 10SO • « « « « . • « «■*««« . . * , 13
Average acreage devoted to cotton, by 5-year periods, West Pakistan, 1900-* 1959 <• • • » ...... 14
5. Allocatipn of cotton acreage by divisions. West P a k is ta n , 1930-54 (5-year average) „ , ...... , . v. . . . . 17
6: Proportional distribution of average cotton pro duction among the six major producing countries of the free world, 1952-1959. • • • ...... i . 18
.... Market functionaries , by type, West Pakistah, 1959. ..-. 50
Distribution system for Pakistan cotton, 1959...... 59
, Relative positions of major cotton exporting coun tries of the free world, by yolumes of cotton exported^ 5-year average, 1954-58, ...... 61
10. Volume of cotton exported annually, Karachi, West Pakistan, 1949-50 to 1957-58 ...... 62
. 11 : ' Distribution of ginning factories, by type, number, and districts'. West Pakistan^ 1956-57...... 70
v iii LIS T OP FIGURES (c ont ' d)
Figure , . : ■■■ Page . ' . . - . ' ■ *
.12^. Comparative average monthly prices of seed cotton, variety 2 89F, Khanewal and Montgomery markets j West Pakistan, 1956. . . » ...... „ , . 90
13. Monthly average spot prices of cotton by variety, Karachi, West Pakistan, 1956-'57. . , ...... 91
' ^. M spoh prices- for cotton, variety 289F, by method ginned, Karachi, West Pakistan,
1 9 5 6 “ 5 7* ;o. e e e ,« e e . . e e e e * o m * a . « * . . . e e . . . . a a 92
15. Map of United StateS. showing relative position of the state: pf Arizona,' ,19 59 ... . . 107
16. Map showing cotton producing areas in Arizona,
1 9 5 9 1 » . a a •" o « a « • a a a e? a a a a a a ,e' a a -a a a . a * * a * a * a a a a 109 CHARTER. I
INTRODUCTION
The Prohlem
Gottoti i's the m ajar cash crop in .West Pakistan, It provides widespread emp 1 oyment5 and since 1:950 has earned for the country approximately 37 per cent of the direly needed foreign exchange to pay for essential imports« Cottoii is not only an important foreign exchange eaxheirj hut also provides raw materials for a rapidly expanding domestic textile industry. : f ' r v . r " '
Methods of production are very primitive and per-acre yields are extremely low* Although ah average of some 3 1/2 million acres wer e devoted to the production of cotton during the five -year period from
1.954-1959$ only about l. l /S million haless or approximately 183 pounds per acre, were produced annually during that period.
The marketing syS:tem$ too, is archaic and encumbered with
'malpractices and iheffic fence § at each step in the movement of the com modity from: the farm to the nRim
1 Cotton-World Statistics, Quarterly Bulletin of International Cotton Advisory Committee, Washington, D. C. , April, 1959. pp. 17, 22.
h i C :' ' t ' : . Objectives,
; «': ■ , \ , ' - ",
1. To determine, through a systematic and detailed study of production techniques, marketing practices, and related activities of
.growers, ginnerS, and buyers, how cotton is produced and marketed in .
West;Phkista,n. \ : ■ 7 ., k '; ■ ; - '- kv' ... r', . .
: 2„ To analyze comparatively the-production and marketing
Systems of cotton in West Pakistan with that in the .state of Arizona, ,
United States of America, '
3, To ascertain th ern a j or p robl em s encum be r in g the develop - meht of the production and marketing of cotton in West PakiStan and to recommend, changes necessary to more nearly, approach the accbmplish- ments, in cotton production and marketing already made in Arizona,
- . ' A'",. ’ '■■■ Ad -'W , ' %ethodS of .Study
Available s econdary data and a limited amount of primary data were collected, assembled, and analyzed to determine how the production and marketing of cotton was carried bn in the Province pf West Pakistan,
These findings were then compared to data available at the Uni- yersity of Arizona on the production and marketing of cotton in the state of Arizona, an area exhibiting similarities in climatic ■characteristics and extreme contrasts in the degree of adoption of Scientifib and techno logical developments in cotton production and marketing." Specific shortcomings denoted in the Pakistani sy^toki. of produc tion and marketing wore singled out, studied, and.recommendations for
T he lack of ad e quat e,,; accur ate ? and a vailable , s. econdaf y informa - . tion on various asgects of the problem was keenly felt in conducting, the
.ntudy...,:: p., fp-,'> :; /: ■; i :' ■ ■: ■ :; i
An attempt was made to secure data firsthand from various- segments of the trade. Some. 660 questionnaires were mailed to impor tant goyernmeni Officials,;, growers, ginners, mill owners, traders, and other interested pers onnel throughout,West Pakistan, -Responses from the few who complied were incomplete, inadequate, and generally unsat-
A follow-up tour was then arranged to personally, contact as many of these personnel as possible. Again, great difficulty was experienced in obtaining pertinent data. Gin operators , mill owners, and businessmen alike were suspicions about the purpo:Se of the study. Language barriers, from one province to another, proved a major obstacle in extracting information from farmOrs,, jSome ginners and mill owners kept no records whatsoever, and the accuracy of those which were available was questioned All records prior to 1947 were nonexistent., having been destroyed during the tnrmoil accompanying Partiti on*
:>[' J
■■■ :
■ Vv' •'
:d':‘
, . Oil August I4j I 947, the Indian Empire was partitioned into two : , independent countries - -Pakistan...... andBha Bharat...... (India), _ ...... The 'former Provinces of West Punjab, North West Frontier, Sind, Baluchistan, East Bengal, and the former states of Bahawalpur, Khairpur, Kalat, JLas Bela, Makran, Khar an, Chitral, Sav/at, Dir, Amb, and Bunerwere combined ter form ' ■ - Pakistan. ' , ' ' p '■ e k K K - p.-.
• ' ‘ K -'"V -
/'V CHAPTER V.:!!
: ' ' - VA " \ , : -, ,, . v ' ,/ / , -- ;; . :
West Pakistan, the world’s largest Muslim State and the fifth
; lar gest country, is als'o one of the yonngest« On August 14, 1947, Pakistan :
emerged ati an independent state, following a redistribution of India along
the lines of economic, racial, religious, and linguistic affinities.
. Vv;;:V':. ;; ■' '"4 f ' Geographical Description: . " v
’ V The Ghuntry ■ 4b :CompiOB ed; of two provinees which are separated ; ■ :,v ■
physically by an expanse of India more than 1,000 miles wide at its.
narrowest; pointy ' V ; g . ■ .r: ' ' , , : ■ '
' ■ '‘W&St Pakistan, comprising an area of;.S09,424 square.miles,
adjoin# the obu of; lrS,n' and Afghanistan on the west and northwest, ' A
India; on the east, Kashmir on the north,. and the Arabian Sea: on the south
and southwesto 1 According to the latest census statistics, the total
Andrus, J. Ri'r/ahA.^- E. Mohammed, The Economy of Pakistan, : Stanford University Press, 1.958.. p. ,8. A . .
A A :''d : ; '•■MA-a T A h ' ; .’4 A. ;. v' population of this Province is approximately 38, 83. million people, making
a population density, of 1.25 people per square mile (Figure. I)* ^
. , East Pakistan, 53,982 square miles in area, borders West Bengal
and Bihar (India) to the west; . Darjiling. ^ and parts of Assam (India) to
tlie north; Assam, India, a.nd Burma to the east; and the Bay o£ Bengal to
the'south. Although it includes an area only one-sixth the size of its ,
western counterpart, Ehst Pakistan claims, a 25 per cent greater total
population (48, 32 million people)^ resulting in an extremely high popula- - ■ ■ V ' - - . ", • :; ' . p ; ^ -. , d .. ' \ tion density of 777 persons: per square mile,
■ Pakistan claims, a-total of 233, 5 million acres of land area. Of
this, nearly 61 million acres, are under cultivation, 27 million are classed. ■•••/' ' ' „ h# : %ulti vahle yfaste -1, 6 million are under '.forests, ■ 57 million a re uncul - ;
livable waste land, and 82: million acres are yet to be classified (Figure 2)
. '■ d'; ; The climate of Pakistan, generally Consider ed that of a tropic d'monsoon nature, actually (offers .'wide contrasts. West Pakistan is
extremely^ dry, barren,.and largely depehidenf upon five main tiy ers for' : :
its life blood, while East Pakistan is very wet,.humid., and riel1 in natural
vegetation. . dd d. d d. d' 'd': ' d .:d; : d-dd d:(. d
1 Pakistan F irst 5-Year Plan, 1.955-60, Gov't of Paklstan:puhllca i tion. p. 1.9 L .
- d ■" ; . : j '' d i ’ . ; _ '-'■V d-: . h o c , cit. K lj& HWEST PAKISTA Tiltf^-i Ktl-fcKtNLfcS Boundary. tm«fT'4 l— i K ^ e ,:-u J—- ',«T* Proving O# State
^ ,lw*y». Broad V A X ^rT ’V -T — ; EAST PAKISTAN Figure 1. Map of Pakistan. 8 82.3 MILLION ACRES Source: Pakistan First 5-Year Plan (1955-60), Gov't of Pakistan Publication. Figure 2. Land utilization in Pakistan, by classification and by acreage, 1957. • .-6 : : ' v/ x . x - 1 ■ The Economy '<0 Agriculture is the largest and most important segment of the country's economy, .Sixty .per. cent of the total cash ihc’ome is derived. from agriculture, 75 per cent, of the labor force is engaged in agriculture as an occupation, and 80-8.5 per cent of the entire population earn their livelihood., either directly or indirectly, from this source, Ll>£ Z '• • v Two principal cash Crops - - raw jute, Snd raw c otton--contribute over 80 per cent of the foreign exchange earnings, ' Agricultur.ai productivity, however, in terms of the latior force engaged, is very low and the population is plagued with extreme poverty. The per capita income, averaging- Rupees 240 ($50, 00) per year, is only about One-fifth that of Japan and one-thirtieth that of the United States. ^^ Ibid. , p. 213, , Census of Pakistan, 195.5, Gov't of Pakistan Publication, 1955. . - - -'. ^'Hereafter rupees will be. re fe r red to: in the abbreviated form Rs. 4. 75 Pakistani rupees equal $1. 00 (U.S.), based on the official exchange rate as of September .14, 1959. .. ■ ^ Akthar, S. M. , Economics of Pakistan, Publishers United Lahore, i%kistan, 1957. . A'f. : -l. :v --''VAr'; . AT-. ‘ ! ' - A-A ' i;.-;' Higiory^f. |il:'l^krstan.: Far more is known about West Paklsta.ii, as it was in 2500 B. C. , than about Western Europe or North America during'the same era. His tor io al eyidenc e indicates that there were civilized people living in ■ Well-planned cities along the banks of the Indus River at a time when the countries of Great Britain, France, Germany, and the United States were occupied only by primitive tribes. Archeological . evidence indicates that cotton was spun in the Indus Valley of West Pakistan many centuries before Christ, The excavations carried out at the ancient city of Mohenjodaro in Sind revealed several household articles wrapped in cotton textile materials „ A careful exam ination of these materials disclosed that they dated back to about 3,000 B. (A PaklS-tan thus enjoys: the distihctten of having been able to furnish the oldest archeological record of cotton textiles. Further evidence of cotton culture in the Indus Valley in ancient .times ar e the Babylonian and Greek words for cotton, irSindhu" and ''Sindon'', respectively. ^ Although cotton has been grown and manufactured in this area since very early times, the industry here nearly died during the industrial 1 Pakistan Commerce, Industry, and Agriculture, British Indus trial Fair, 1049. revolution when 3.ntiquated handioom methods were forced to compete with modern spinning machines of the West, In fact, cotton mills were not introduced into India until 'nearly a century after they were established in England*.- ; '• ' -. . . . This was due apparently*to a lack of interest on the part of Great : Britain, then ruler of The Indian Smpire, in the industrial development of this vast country. ConS equently, India trailed far behind in the race to - meet the constantly increasing demand for textiles, and for many years ; most of the fine fabrics selling in the Indian markets were British-made* In 1947, of a total of 421 textile mills "scattered throughout India, only 17 m ills, with a total of 177,418 Spindles, were located in the area now included in ;#akistanwm - p ., ; / % f; . V . ; ’ ■ d. "Since;Partition, industrial development in Pakistan has. shown significant growth:, ■and'ndw, for example, there are 97 textile mills with . l,hO0,0OO spindles seridng this same area.- Dunn, R. P ., Cotton in Pakistan and Indian Union, National Cotton Council, Memphis, Tennessee, 1949. p-. 134. • ; The Pakistan Cotton: Bulletin, Pakistan Gentrai Cotton Gommiitee, :i955. P. 40. - ■ . ■ ■ -: : ' ; : ’ The Pirst 5-Year Plan, 1.955-196.0,,-dp., cit. , p. 430. PRODUCTION OF COTTON IN WEST PAK35TAN ' ;■•■>• ■ v-:; . Production-Areas' ‘ : India at the time of Partition was' ontranked: only by the United : States in total cotidii:jproduGtion. ; As. S result of this uprising, the fertile, irrigated growing areas of Sind, Punjab, and Bahawalpur beca.me a part ' - of WeSt Pakistan, - • ■ ' ■ . ' P: . ;v;:: . Cotton production in Pakistan is confined mainly to the Western •sectof ., The main cotton growing area extends along a fairly well-defined • belt running north and s outh and encompas ses; the maj or. c otton p reducing districts of Lyallpur, Shahpur, Gujrat,' Jhang, Sheikhurpura, Montgomery,; .. Multan, Bahawalpur, Rahim Yar Khan, Tharparkar, Nawab shah, and Hyderabad (Figure 3). ' ■ Trends in Acreage and Yields. - -P . ' ..P: . • 'P Acreage ; ^ • ■•■ . ' The first half Of the present century has seen nearly a five-fold • ■ : -p k pc; a increase in acreage deyoted to cotton in the areas now constituting West ; Pakistan (Figure 4). „ ■ M 13 TRIBALAREA malakand/ <5 / SAWAT MARDAN R.PINDI BANNU - S|ALK0T SHEIKHPURA LAHORE L.S.S. 289F/42 KALAT MAK RAN LAS BELA -DESI KARACHI ABAD \ DIVISIONS DISTRICTS FEDERAL AREA Figure 3. Cotton map of West Pakistan showing divisions and districts, 1959. ore Cluae fo Pksa Cto Blei, aitn Central Pakistan Bulletin, Cotton Pakistan from Calculated Source: gur . age acreage de e o c t b 5- perods, est W , s d rio e p r a e -y 5 by , n tto co to ted o ev d e g a e r c a e g ra e v A 4. re u ig F ACRES (MILLIONS) 90 - 0 .9 0 2.50 0.7 0 0.7 3.50 1.70 — 1.70 900 'S'O l-l '5'02-5 2-3 '03 '5' '04 ‘ 50 '05 ‘55-'59 '50-55 0 -5 ‘4 5 '40"45 '35-'4 0 '30-35 '25-'30 'l5-'20'20-25 'lO-'lS 'OS-'IO 1900-05 Cotton Committee and The Budget, 1959-60, Econ Survey and and Survey Econ 1959-60, Budget, The and Committee Cotton ttsis Apni N. 5. No. Appendix Statistics, st 1900-1959. , n ta is k a P YEARS 14 The incTea.se in cotton acreage .throughout this area began during the latter part of the 19th century and was attributed mainly to an increase in irrigation facilities«. By T945 approximately three million acres of cotton were being produced in the area now known as West ^Pakistan.; ■ i . ', '7' During',the nekt; five interrupted due to the chaos- resulting from PSrtition»; Many of- the people who migrated fromlhdia at this time were unfamiliar with cotton growing pra.cticeS in this part Of the country. This, cOxipled :v^h seye;re ‘ floods during the planting s eas ons of 1948 and 1:949, the restriction of irrigation. Water by India, and unavoidable delays in the reassignment of lands to new Settlers} naturally reSulte.d in decreased cotton acreages for a time, ' . Although the situation had stabilized s ornev/hat by 1951 and, 1952, the advent of the Korean War brought about an increased demand for food grdihs af-thec ekpenSe- of cotton production, .. , ; . -. 7 .; .7 ' . Since 1954, howeyer, the trend toward increased acreages devoted to this fiber cr op has r esumed, and during the 1957- 58 s eas oh a total of 7 1- " \ A ../I' -:-'''..:7:777'' 7 .--7: ''7.7 ^ '717 ' 7- w-. ,7-' - p,' ,77 P;>P-,.P ■ ' - - : / „ ... .' : - 3, 592 million acres pficotton'Weye chltiyated, ■p- p 7 l ; 1 The Budget, 1959-60, Economic Survey and Statistics, Gov't of Pakistan Phhlication, SthfiOtical^ TOble No, 5, ' • . . :: ■■ 7 :: 16 Three divisions,1 of the country account for more than two-thirds ' of the cotton acreage. They are Multan, Hyderabad and Bhawalpur ^:(Tigure;h)T/; (Vh : / . ' . ' h '' '' ■•f ': " ■ '' f !; / Tleldd , : : . ... ■'' ' V : ; '' .. ', ; Pakistan produces about 4..7 per cent of the total free world cotton and ranks sixth among the major cotton producing countries of : i the free world (Figure 6) :U"v The, average yield per acre, after having shown a 3.0 per cent increase in the 12 years since.Partition, still is notably poor when com- pared to cotton, grown in irrigated sections in the United States (Table 1). ^ ^ */Vest Paki^tah'lh made iip of eight diyisione, eaxh division ■ . . cotis-lsting pf fwo'to sevendistricts» ■ : _ , . f ^ : ; ’ ^ Statistical Year Book of Pakistan, 1955, Gov't of Pakistan Publi- . ■ cation, 1955., ;..■■ ■■ ' : ■...■ ■-■.' ' ^ Calculated from, Cotton World Statistics, Quarterly Bulletin of the International Cotton Advisory Committee, Wash., D. C. , July; 1959. p. a . . ' '.,'v , 17 DIVISIONS Source: Calculated from Statistical Year Book of Pakistan, Gov't of Pakistan Publication.. Figure 5. Allocation of cotton acreage by divisions, West Pakistan, 1950-54 (5-year average). cr 60 \— 40 h- io COUNTRIES Source: Calculated from Cotton World Statistics, International Cotton Advisory Committee, Wash. , D. C. , April 1959. Figure 6. Proportional distribution of average cotton production among the six major producing countries of the free world. 1952-1959. Table 1. Comparative Cottoir Yields, Short Staple Cotton, ‘West Pakis ■ tan; Arizona and California, iJnited States, 1957-58, - : : : Country d r S ta te ■i > Yield Per- Ac re ' ■; ■ ■ 1 ■. ; ; V f pOtmdS ' ' . ' . : f- - t'' ::9 W e s t Pakistan ' 1 ■: ■ ! ■ . ' Arizona (USA) : Ay: -S’;, . ;:n id'/: ■ ‘ . California (USA), ..p: r-' ' % '■ f Source: The Federal Crop and Livestock Reporting Service for Arizona, Agricultural Marketing Service, II. S„ ■ Department of Agricul- '' ; ' ’ 'ture, Phoenix, August i2-, .I,. ^ \ Varietal Distributioh A n a e fic d h V®Tt etib s Approximately' 90 per cent of the cottons grown in West Pakis tan are of adapted American varieties, Gossypium hirsutum. Those best knoym in the international market ar e Punjab American 4F, Punjab Amer lean LSSl Fhmjab Americati 289F, Punjab 289F/43, Punjab i99F, AC 134, and S ind:;^p4;9':(M^.4).4-. . ; .. :;.r ' ,>'■ 9 : ' ' & Cotton Situation, Pakistan Gov't Publication, December, 1955. 20 Punjab American 4F This was the first and for■ many years the only American cotton to be grown in Pakistan. Although it has been adapted to Pakistan conditions, it still very closely resembles American Upland cotton in color and staple. Today, its growth is limited to the districts of Jhang, parts of Lyallpur, and Montgomery. It has a midseason maturity, a staple length ranging from three-fourths to seven-eighths inches, and produces a fine white lint. Punjab American TSS This variety came from a selection of 4F and was first distributed for general production in 1935. It matures' somewhat later, excels slightly in staple length, and is finer than 4P. It is bright white in color. Punjab American 289F Punjab 28:9P was first grown in the Punjab in 1923. Because of its long staple and fine lint, it soon gained recognition in the international market. The color of this cotton is a creamy white and its staple length . is one inch or greater. It is grown mostly in Multan and in parts of Muzzafargarh, Dera Ghazi Khan, and Montgomery district. Punjab 199F . , „ . This variety was of late origin, being released only in 1943 for general production. It averages 1 1/8 inches in staple length and is grown mainly in Multan district. 21 A aew" variety, derived, frora Punjab American S eed AG 1.3,4, has consistently outyi.elded all others now in general production,, It is grown, '(M-4) ' ... / . y >d.' . ■: . ; . ■ • The former1 province of Sind, late in adopting .American cottons for general production, now devotes 95 per cent of its cotton, growing area to a locally-bred American variety--Sind N„ T.- (M-4), It is a fine white cotton with a staple-length of 15 /1,6 to l inch. Desi Varieties. DeSi (Asiatic) varieties, Gossypiura arboreura, grown in this area Since early tiraes, are no longer of any real significance in Pakistan. Only two of these varieties --Punjab Desi and Sind Desi--are still grown to any extent and together constitute only about 10 per cent of the total cotton acreage. Punjab Desi This variety, formerly grown throughout the cotton belt of the forraer Punjab, is now permitted only in parts of Dahore, Bheikhupura, Sialkot, Muzzafargarh, Dera Gazi Khan, and, Gujrat districts. Under the : Cottoh Control Act of 1949. The lint is .coarse, usually of bright white color, and with a staple length ranging from 1/ 2, to 5/ 8; inches. ,22 Sind Desi The Sind Desi variety is somewhat shorter and rougher than Punjab Desi with a staple length ranging from 3/8 to 5/8 inches. Its color is also bright white. A characteristic feature of Sind Desi cotton is its harsh feel which makes it especially suitable for mixing with wool. It is mainly grown in Nawabshah -district and in parts of Hyderabad. Methods of Cultivation Soil and Climate There are six^ principal soil groups devoted to cotton production thr oughout the wor ld. They are: red - y eliow podzolic , r endzina» alluvial, reddish chestnut, reddish-prairie, and reddish -brown laterltic Soils. Soils in the cotton areas of West Pakistan generally fall within the alluvial group. They range from light sand to heavy clay. The higher yielding Soils are of a loamy type. Most of these soils are greyish brown in color, but some of those in the Thai Project area tend toward . the reddish hues. ■ • ' ' The climate in the cotton growing areas of West Pakistan is marked by extremes. It is yery hot and dry during the first half of the growing' season, continued hot but rainy and humid during the remainder ■■/ip:: . t /pti p/i:; 'yip' t / ; ; 'Brown, H. BP, Cotton, McGraw-Hill Book Company, Inc. , Third .Bditiom IfSS, ip,-. 2 th .: y ;i: ■ ,'-v ;v ': ■ 1 : of the season, and freezing’ cold during the winter months« The hottest weather occurs during the months of May and June, Durinjg this period air temperatures frequently reach 120° F„ and on. the surface of the ground often climb to. as high as 1.90° F„ Frosts generally occur during late December and. January, In February, temperatures begin to moder- ate, but damaging frosts have been recorded late in the month, Gultural Operations Planting time varies in the differ ent cotton areas. In the .sub- mountain and rain-grown areas of former Punjab^ planting can be done much earlier than, elsewhere in the Province, and generally takes place . ' ' ' ' 1 . . . in March, hi the Canal Colonies the most favorable planting time is from mid-May to mid-June, . However, the farmers there often begin sowing as early as mid-April, In former Sind, planting usually occurs during April and May, Planting Is generally done by broadcasting the seed. This,, of course, results in lack of uniformity of distance between plants and pre cludes the use of mechanical cultivation. ■' Rotation The bulk of the cotton: crop is grown in the Canal Colonies Usually following wheat or Tpria (an oil S e e d cropj in the rotation. Cotton also; 24 A field of cotton of an adapted American variety ready for picking. follows in rotation such leguminous fodder crops as mai^e, berseem, .senji$ and shaftal, each of wMch is noted for enriching the soil in nitrogen. In the inundation canal arecis, where there Are large units of area and extensive cultivation is practiced, cotton is also grown on fallow lands „ In former Sind, generally a three-year rotation of cotton, • wheat, and fallow is the rule, Gotton after fallow has been found to give higher yields and appears, to offer a great potential for improving cotton yields, Seeds and Fertilizers - In the case of Desi cotton, the recbmihended seeding rate is lower than in the adapted American varieties grown in Pakistan; The Depart ment of Agriculture recommends a Seeding rate of 16 to 20 pounds in the cas-e of American varieties and only eight to ten pounds in the case of Desi varieties, Previous res earch has revealed, however, that seeding rates actually practiced in West Pakistan ranged from six to 160 pounds per acre. This wide variation has been .due m ainly to the ignorance on ; the part of the growers and an ineffective extension service, . Insufficient quantities of farmyard manure, extremely high costs of commercial fertilizers , a limited water supply, generally low cotton prices, and the relatively poor financial positions of most farmers have prohibited the extensive use of fertilizers, in the production of cotton: in; We/st Pakistan. ‘ ' . ' Rainfall and Irrigation , • ' %he aver&ge rainfall ranges fromthree inches at Mirpurkhas (foraaer Sind) to lh Inches at Lahore» Most of the rain falls during the period from. July to Sept ember» The rainfall is generally too sparse for the production of nonirrigated cotton in West Pakistan. The exception to this occurs in the mountainand' snbmountain areas wher e cotton is grown ‘ entirely from natural rainfall or supplemental well irrigation. The irrigation system of West Pakistan is supplied mainly by five rivers which are the: lifeblood of Western Pakistan. The economy of the Province is largely dependent upon.the amount of water flowing through these five arteries. West Pakistan is one of the world's largest irrigated regions. More than 18 million acres, or 60 per cent of the to ta l cultivated area of West Pakistan, .depends entirely upon irrigation water- to produce ' cotton, wheat, rice, sugar cane, and other oilseed crops. Although no precis e list of rules is followed in irrigating the cotton -crop, the following factors are taken into consideration in deter mining the frequency and rate of application of irrigation water. They 1 Gurmani, M. A ,, Growing More Pood in West Pakistan, XJ» S. Information, Karachi, Pakistan, February 11, 1957. pi 12, 27 variety grown (Desi varieties require comparatively .l:e#S water), variation in rainfall, type of soil, and intensity of heat. The normal procedure is to- first preirrigate heavily* The next application of water is applied approximately one week after■ planting. In general^ a total of five to seven appiications are .considered snfficlent with the intervals between irrigations determined largely by the distri bution of natural rainfall. Following the first picking, there is usually no further application of water made. hand Tenure System: '•"i '■ ' '■ 1 '■... ' ''' ^ ■ The land tenure system in West Pakistan consists of tenants, peasant-proprietors, and rayatwari (lessees of state land), - : ' , ; : 1 ) Tenants:, -'i ■ . "'V ■ ■■ ' Owners, of estates-, both large and small, often lease their land to tenants. These landlords frequently take very little interest in cultural practices followed dr in land improvement. Normally, the rent charged amounts to fifty per cent Of the gross produce with the tenant-responsible for all the expens es of cultivation. In periods of low prices, this frequently leaves the tenant with little or ho remuneration for his labor. Even when prices are normal, he goarcely manages to make ends meet. Apart from the legal or customary share of the produce, the tenant may be subject to 28 a variety ofother charges as well. The landlord, because of his .strong social3 economic, and in many cases political position., normally domin ates the cultivator and exploits him and his family in. every possible way. These practices are typical, in varying degrees, throughout ‘West 'Paklstau./:, ' v. i:/-. y;' v 1 .. 1: h.;y. : " ,>-'1, . Feasant .ProprietpirS' ' PeaSahtS may own. comparatively small areas of land which they cultivat e f hems elves vdth the. assistance of their family memhers plus some hired labor» Their only financial obligation; to the .state is the pay ment of a land tax which ranges. frOm Rs, 1= 00 (20£) per acre on rainfed lands to Rs. 7= 43 ($1. 57) on irrigated soils. * About half .of the area in Pakistan is farmed by these owner-cultivators. Rayatwarl. This is a system whereby the state leases land to a tenant. The occupant enjoys heritable Wd transferable rights, which place him prac - tically oh the same footing with. An actual owner. : This system prevails throughout former Sind. . : ... • Land revenue also inciudes some other charges such as refugees tax, etc. ' A ; a ' ‘ \ ' ‘ , ' . •. - ■ " ; y > _ 'A'' • . Akthar, S. M . 3 Problems And Prospects of Our .IkTonomy, Pub- . lishers Hhited, Lahore, Pakistan, 1955. p. M* ' ' A . ,iPes,ts ; and Pis eas es The cotton plant in. Pakistan is subject to attack from., a .multitude of different insects and diseases,, In former Punjab, losses to the total cotton crop amount to about 20 per cent annually. ; In former Sind this figure runs even higher. , • -if- .'v y ; . : p ■ The more important pests,hr insects which threaten the cotton . crop in West Pakistan are the pink bollworm, leaf roller, cotton jas sids, white fly, and spotted hollworm. ‘ ; Piidcihollworm .p.tk If: :" '/:v - ' f l .• I v . -I ■ ■ : This dreaded: pest lives cm cotton and other malvaiceoha ^ » It w as. fir St. reported - in India around 1842, Since that time it has spread to; most of the cotton: growing countries of the world, - ' ■ The threat from the pink bollworm is most serious in the cotton growing tracts of the former Punjab, No effective measures have yet bceh undertaken to control its spread in this country. Dunn, R. P. j Cotton in. Pakistan and Indian. Union, National Cotton Council, Memphis, Tennessee, 1949. p. 34. ,, ' : .. : / 30 Cotton leaf roller One of the most predatory ins ects 'which has appeared in an epi- . demic form in Gujrat and Sargodha districts of West Pakistan is the , , : ■ cotton leaf rolief. /' Each year more .and more area id becoming infested'with this : ' 7 insect. In 1956 about 37,000 .acres of cotton were completely -devastated in the two districts of Gujrat and Sargodha. ^ • \ \ . ' ■ : -o'o-"-. ■ .-v,. 7.:: i • ' 7;'; - 7 ■ 77.; The Department of M a^ Protecfiomin conjunction with the Depart ment of Agriculture has a control program, underway to combat this ■. ' ■ c ; ' T ; 7 V ■ ' menace. ' .7 7: Cotton jassids . / a. - : Damage caused by the cotton jassid has been confined largely to former' Sind.. hi the past this pest was' a most serious threat to the : ' 1 ■ ■ . ■ " " . . : . . ' ■ e being . id Pakiitan® However P redista^it varieties • have now been developed w ti;^ tend to reduce the economic losses; incurred from this source* White fly ,: ;■; v :' - v; '■ ^ vVVy''.: _• ..•„ = . The w fly is a s erious menace to hqth DeSi ahcl Anrerican cottons in this country® &S attack is most severe during the dry season The Pakistan Cottons j 1957 Annual Number^ Journal of the Pakis - tan. Central Cotton Committee, p. 86. --i: ,W' 31 or in. extremely dry parts of the cotton belt. Rainy weather seems to be the most effective deterrent since this insect cannot survive under these atmospheric conditions, : Spotted bollworm " ;.^VT‘his is another deadly enemy of the cotton plant, and is of especial concern in the canal colonies and certain sections of former Sind. V , ’ . . . ; . . Dis eas es ■ Rppt-rpt : : ' ' t v ' ; : :.v-': ' ; . Root-rot is a very destructive and widespread disease which preyails throughout the cotton belt of West Pakistan, In normal years, losses from, this disease alone amount to about five per cent of the total crop. West Pakistan has been plagued by this disease for many years. It is caused by one or more Species of rhizoetonia and both American and Desi cottons are vulnerable to its attack. ^ The Pakistan Central Cotton: Committee has now instigated a \ research program aimed at the development of an effective control for this disease. ' a ^ Vasudeve, R. S„ , Studies on the Root-Rot Disease of Cottony in Punjab,' :1937. p. 25% ' '3 2 T irk This is a physiological affliction to American cottons which results in' poor opening of the cotton bolls. In cases of severe attacks, losses in yields may run :as Mgb as 75 per cent, ' , hater planting and an. ir rigation at the time of flowering have succes sfully controlled the spread of this disease, • Angular leaf spot ■ ■ This dis ease i.S confined mainly to American cottons . An attack early in the season results. in substantially reduced yields. Fortunately, many strains are resistant to this disease. Red leaf blight . ■■ - ; ''1' -:'.o - ; ■ In the ehrly stage of boll development, usually during the latter . parts of August, this disease makes its appearance in former Sind, The cause of this abnormality is a deficiency of nitrogen. It is effectively remedied by an application of sulphate of ammonia, especially in the case of i i ^ s a n d y soils. k . k , , Salinity and Wat eriogglng The magnitude of the salinity and waterlogging problems in West Pakistan is greater than is generally recognized. Nearly 50 per cent of the irrigated land of West Pakistan is affected by increasing:'deposits of crop-destroying salts. Out of approximately 14 million acres of land under irrigation, in the former; Punjab Province, over three million are now badly affected by salinization and waterlogging. Of theee, some 1„ 3 million acres have been totally withdrawn from cultivation, while 1„ 7 million more have, been affected to the extent that their yields have been reduced by an average of 50'to 60 per cent. Another 4, 6 million acres are also beginning to show effects from salts, and if immediate remedial measures, are not taken, they may also become seriously affected. l ■ ‘West Pakistan is losing nearly 75,000 acres of cultivatahle, irri gated land every year, and if this trend is allowed to continue, annual v: A wv':;.:-; \ - ' insS es ,could: AaSdly: reach, the: @f>.0 -acre-tiaark 'by 1961, ' - Af this, ; . rate, in four years time the fertile Indus Basin would be turned into a vast uncuitivatahle waste, f : , i V - “ ■ v Wateribgging has alsb: taken a heayy toil of West Pakistan's irri gated land. In the Multan and Lahore divisions alone more than 20,000 acres haye • been completelytforc:ed out of cultiva/cion: from this, cause 4 In the newly deyeloped area, of Thai, the watef table in certain tracts is also rising rapidly. This is due,to the failure to provide for proper ; ; .Bell,- L O. , Director, ICA in Pakistan, Agricultural Crisis in Pakistan, U. S. Information Service, Karachi, Pakistan, Feb. 11, 1957, .y - lloc. city - ■ :v'.y ' ':y . . f , " y, ■ 3 ,Gurmani, M. A ..,. op. cit. drainage when the irrigation system was initially iaid out. Unless , . remedied, the future of the whole project may be jeopardized., Leaching, the principal method employed for reclaiming saline ■ spilS> is very similar to-that employed in other countries. The actual ' reclamation work is as yet confined to the central areas of West Pakistan, where the Directorate of Land. Reclamation and the Soil Reclamation Board are operating. /’ . , The problem, is so enormous and crucial that the International Cooperative Administration of the United'States xS .assisting in this work and under its aid a Well-equipped laboratory has been, set up for the study :and analysis of water and Soils problems. . ■ v kiethods' of Harvest In West Pakistan, cqtton is harvested solely by hand, the labor being performed chiefly by'women and children. Two different techniques : n are employed in removing the cotton from the plant- -handpicking and handsnapping, . y . V t,; , In most parts of the cotton belt the locks are pulled from the bolls, leaving the boll intact withy the -plant. . This is known as handpicking. In , t ' some sections, the entire boll is plucked from the plant during the initial ■ picking operation. This practice is referred to as handsnapping. The latter method is less desirable, since it introduces more foreign material 35 In Pakistan cotton is harvested mainly by women and children. . ■ ' 36 into the lint) tending, toward, discoloration and a reduction in lint equality. Further contamination of the lint results from the: common practice of assembling seed cotton in. piles on the ground immediately following ■ picking. ' ' . . ■ During the latter part of the haryest season, fields are generally covered with a heavy dew each, morning. Farm operators frequently take .advantage of the added weight provided by this moistur e and confine their picking io this period of the day„ . . ‘ ■ v1,:; Production Credit Farmers, in. West Pakistan, are plagued by extreme poverty •and; are heavily dependent upon some source of credit to, finance the produc tion of their crops. The most important s ources of financing ar e private individuals., ■ village shopkeepers, 'CommiSsionragentS', cooperative cr edit societies:, the governm ent, and ginners. . Private Individuals . Farmer s frequently look to their landlords, relatives , or friends as sources of production credit. As a rule, no interest is paid for this, type of credit and repayment is made in kind following the harvest and ■ ' sale ef''th.e crtip. ' • . v ' "Village Shopkeeper The village shopkeeper, who purchases seed cotton from growers, also provides credit.to them. B.epayments to him are generally made in. kiad at time of-harvest. Commission Agent A grower may obtain credit from a commission agent solely on - the se-cnrity of his prospective harvest, which must be s old through this agent, . - \ ; Agricultural Cooperative Credit Societies There are about 26,648 cooperative eredit societies which advance loans only to their members, ■ The prime object of these societies is to prevent producers from being, victimized by unscrupulous money: lenders, Although these organisations provide low interest rates as com pared to other .sources, membership in these societies is still top small to have any major effect upon the credit structure of this country. The total membership is approximately 1,142,480, ^ t i ' Earodhi, . M ,, Agricultural Marketlhg in Pakistan, Amin Book Co, , Kara-chi, Pakistan, 1958., p, 141, . ‘ v : 38 Government The governments, both central and provincial, make various kinds of loans to farmers. The most important of these are development and -emergency loans. . ' Development loans Development loans, are granted prim arily for the purchase of improved seed, modern machinery, and for the development of existing, land and irrigation facilities. Emergency loans ; : - ; ' - Emergency loans are made only in cases of a Serious crop failure or similar emergencies. ;V' v Ginner - ' - ' ' ;; ' , . a.'. The-practice of lending by ginners is. confined mainly to former ■ Sind, where 49 per cent of the crop is financed through them on a forward c ontract bas ts . . 1 . 1 Other Tending Agencies. Certain firm s, e. g. , Volkart Brothers, British. Cotton Growers Association,' Gill & Company, haye agents stationed throughout the cotton belt of West .Pakistan. One of their functions is to.-administer production Credit, which, is. issued on the basis of a forward contract. . • . ' ; ' 39 . Posts; of P roduetion ' ' ' Reliable information regarding costs of production of cotton in West Pakistan is very sp&riSe and naos’t difficult to acquire. ■ . P rib i to Partition:,: :a Stody. was naade^ to determine ctists. of; piio - •duction in Lyallpur, Jallunder, and Guradaspur. districts of former Punjab .from 1933 to 1935 (Table .2). ^ Another study relative to per -acre cost of production was made in the district of Lyallpur over a five-year period, 1935-1940 (Table 3). ^ The most recent data available concerning costs of production of seed ■cotton pertain to the 1957- 58 ■.Season', Eleven. villages we re surveyed in Montgomery, Lyallpur, Sargodba, and Multan districts: (Table 4), 1 Annual Report of the Department of Agricultur e , Punjab, 1940, ■ Lahab Singh, S, S ,, Cost of.Production of Crops, Publication No. 8.3, Board of Economic Inquiry, Punjab, Lahore, Pakistan, 1.953. Table 2. Costs of Production of Be si and American Type Cottons ? Byallpurg Jallunder, and Gurdaspur Districts, 1933-193 5« - ■' 1 1 : ’ • ■ , D istrict 1 ■ Cotton Type , ;r ; . V Lesi ; t " American ' 1 Dbis: , t Rs, l.- ' Dols, Per Acre ■ ■■ ■ .. ■ i ■ . ■ t.; ' Lyallpur 1 38, 35 8, 07 i 46, 75 9. 84 Jallunder ''5 5 ,2 2 ' 11,62 T . Gurdhs pur ; . 20, 57 • ■ 6, 43, T ■ ' -; Pe r Bale'2 . ' ■ > ■; / ' . a i - ■ , ■y Lyallpur 122, 93 ’ 4,83 1 23, 52 4, 95 Jallunder ■ ' 3L 67 7, 93 ■ i Gur daSpur' j # , 92: . 8, 61 " :t ; 1 : *'; ■■ ' : '4\ . . ' ■' ; 1 1 . • ' • , . ■ : " ■ 4. 75 rupees equal $lo 00 (official exchange rate as of September 1.45 1:95% 2 • ' ’ ■ , / y ' One Pakistani bale equals 39.2 pounds net weight. Table 3„ Per Acre Cost of Producing Cotton in Lyallpur District, , 5-Year, Average, 1935-1940, ! : ■ - E^tetit of ' . ■ 1 ,1. Costs pe r Acre Per Cent C ost Item 1 Pmpibym ent t of Total !"... ' : : 1 Rupees L Dollars 1 , » 1 .AD-:i;R : ■ Pulltime labor 'r":i3. 3:: das , @Rsf ^ 0. 54 j 7, is. 1. 51 ; i 22.. 0 . Part-time labor ' 19- 0 i ^ ' ; 0. 27 A ROS; ’ 1. 07 l Bullock labor ' 5.9 " 0. 90 < 5,31 1. 12 .! 10. 0 S eed , ' . '23 maunds ■ ’ . . 1 ' @ Rs. 3* .0 4, i 0.47 .11 1.0 Implements r 0 . 74 . 15 i 1.0 Artisans ' ■f . . ■■ ' • : ' 0.28 .06 f Wat er rates ' ■. 1': 5.25 1. 10 ■ Manure' ■t 1.2 9 cartloads 't - •' ' ■ ' @ Rsi, 1,25 : V 1. 65 .34 Rent i ■ . ; 1 25. 52 5. 37 • r 45. 0 Land r e venue i \ '■ ' ' - ■f 5. 30 1.11 t - 9,0 1 T Total ! ," , , ■ 1 56: 75 11.94 i 100.0 f : : ■■ ; t ' •- :■ , ■. 1 ■ . ' ■; • ' , . : ■ ' ■ " ; ■ ■ y / ' - . , - . ■ : '/' 4. 75 rupees equal $1. 00 (based on official exchange rate as of Septem ber;.l4::i9:59). . \ 'f- ■ ■ TaMe .4, Cost of Producing American Cotton in Lyallpur, Sargodha, Montgomery^ and Multan District's, West PaMstan^ per . , • Acre, 1957-5,8C I . Cost Cost Items ■: t. Rupees 1 - Dollars f Preharvpsting costs . . ! \Y/'y ..iCand h e h t. " r V':"’ V q:/-q ■ y t 60. 00 ( 12. 6.3 ■ Preparatory tillage : ' ■ . 1 '- '' 1 i 12.00 ,2.52 3 plowings Rs^;4s:0O ' . 1 ' 1 Manuring 1 1/2 cartloads @ Rsa 3. 00 4.50 i 6, 94 Seed-bed preparation and sowing " -I- . 1 A plowings @ Rs„ 4. 00 • ; .■r 8 .0 f ; l . 1.68 2 plankings @ Ra. 1. 25 ■ ■i t 2. 50 -1 , 55 -y.; Seed cost 16 pounds 2.00 't . .. 42. "Bund" making 1 day's labor @ Rs. 10.25 • \L 2 h v t y ' i Mtencuiture and irrigation'. ' - / f iV Hoe.ing @ Rs. 5. 00 i 5.00 r ' 1. 06 Interplowing @ Rs . 4, 00 t. 4. 00 ; . 85 Rabor (8 irrigatiohs) @ Rs. 0. 31 . t 2. 50 ■'..'53 Irrigation channel maintenance f 1. 50 ; .l v . .'32 i 1 Harvesting costs ' ; • t V Picking charges @ 1/10 of total produce $ ;.2'5.59: Remoyal of cotton sticks (2 men @ Rs. i»:25 r 1 . ■ - ' ■ . y per day) i 2. 50 1 . .53 ; i ? Rand Re venue and taxes ! 7. 62 -1', 1.60 Water rates @ Rs. 5. 2,5 per acre "i 5.25 ■ 1 1 .10 Refugees tax ': i .65 ' f • . 13 Artis ians and implements ^ f 5.00 ' t 1. 06 Transportation char gea R;S., h .T i p e r 82.27 lbs, "".t ; '■ per mile (average distance 7 miles ) " r 5.25' i :'.%:l0.'^ Marketing charges @ Rsy 1. 00 per 100 B.s. t 4.15 ; i .87 ’. Subtotal . ; • t 159. 26 ; t ■33. 52 Res a cr edit of cotton sticks ' 1 5. 00 •4.. R:05 i 1 . Total Costs 154.26 32.47 Return for land and management (Average yield 4 i : 576 lbs. of seed cotton at Rs. 0. 40 240.40 ,4 ' 48. 50 :: j 76,14 : .-'1 16.03 Total Return . ' i ^ 4.. 75 rupees equal $1. 00 (hased on official exchange rate as of Septem : her 14, 1959). ' y - '• : CHAPTER IV IvDALBLECIDTriPICl COTT ON IN WEB T RAK#T AN - Market Or ganization. ' Market Types • There .are three principal types of markets concerned 'with.,the West Pakistan cotton.trade. They are primary, secondary, and terminal m arkets<» ^ .. ■ ' ; . Pfimary market. ■- _■■ ■ , - . A primary raarket would generally be an isolated village in the cotton growing area, with an inade quat e tran s p o rt at ion system and with no direct communication to the outside,, Here, a grower sells his seed cotton to: perhaps the. Only local buyer, who .in turn, ships it to a ■secondary market, A very limited quantity of seed cotton actually passes' through such markets, and hence, this market type is relatively unimportant. Secondary mhr.ket • y ■ . , ' . \y ' ; Secondary markets, commonly known as "mandis", are wholesale concentration eenters, serving a radii of about TO miles. They are ukually equipped with, telephone And.telegraph; systems and are served by a railroad. There are approxim.ately 72 important ■S.ecoTidary cotton markets in the province of West Pakistan (Table 5). l '' Terminal-market A terminal market is a very large marketing center, where goods from secondary markets are -concentrated primarily for shipment to foreign countries. W est Pakistan has only one. such market which is located at Karachi. 'Degree of fntegratioh . ' The cotton industry in West Pakistan is not integrated'to the extent that it is in the United States and some other countries. A few of the yery large cotton producers, e. g. , the British Cotton Gro’wing Asso ciation, in addition to producing cotton also operate ginning factories and oil m ills.. In fact, they may perform complete marketing operations commencing at the farm and terminating at the Karachi market. Cotton mills, top, generally purchase and gin their own seed cotton in this Country. \ ^ Crop Wealth of Pakistan, Gov't of Pakistan Publication, 1949° Table 5. Location, of 72 Secondary Cotton M arkets, by D istrict, West Pakistan, 1959. i ■ . : . ■ ,, ' * / / " ■: ;...... * ' '' D istrict r location, of Markets 1 ' . " ' ' ' ;' ; ' " l y a l l p h r , Lyallpur, Gojra, Tandlianwala-, Toba tek Singh, , Chak Jhumra, and Juran-wMa, • ' f / ' ■ - : : "" : mxjltAn ; . t' Kabir-wala, Shuja abad, Khanewal, Mian Channu, i Shamkot, Abdul Hakim, Vihari, Burewala, Jahania, I and Lodhran. a ;/ ; . ■ ;■■■■ ■ ■ ; ■ ; \ ■" ' .. LAHORE ; . * Kasur-,: Potoki, Raiwind, Kot Radha Kishan. - ' ' ', . ' ; ' ; ■■ ■ ■ ;■■■■. ' SHAHPHR , Sargpdha, Bhalwal, Juharabad, and Silanwali. ■ ' MONTGOMERY , Montgomery, Okara, Chichwatni, Dipalpur, i Arifwhla, and Pakpattan. ' ^ ^ 1 ■ ' . . . ; r JHAN.G j J"han,g, Shorkot$ and Chiniot. . i ' • ■ SHEIKS HB.HRA . ^ San gla Hill Ahd Nankana Sahib. , g h ir a t . : : ■ , Mandi Bahawaldin.: . yAv’.'' " ■ ' ■ . " V ' 1 ' ' ■' ' A V. 'V m h z a p f Ar g arh ■ i Musaffar Garh. ■ "• ' : ' : ' ■' a • :. v; ' . HYDER ABAD t Hyder abad, Matari, Hala„ Tando Mohammad, i Khan Khandu, Tando-Kaiser, Matli, Tando ' , Allahyer, Tando Jam. "A , ■' : ; . . ' ; ■ THARPARKAR , Mirpur Khas, Jhol, Sinjohro, Pithoro, James abad, , Digri, Tando Jan Mohammad, Dhore Naro, Jhudo, , Nibisar Road, Kunsi, and Shadipalli. 1 V . ' •' - ; . / - , ' " ' NAWABSHAH , Nawab shah, Shahdad pur, Padidan, Bhirya Road, : 1' Mehrab pur,' Sitharja.- % . ' ' d" EHKKARv ■ ■ A A j Sukkar, Shikar pur , and Hbanr o. : i : ' ' ' • ■ V • V ; . ' , ' - , BAHAWALPHR . i Rahim Yar Khan, Khanpur , Sadiq abad, Chawdhry, 1 Bahawal Nagar , and Ghistian. Source: Crop Wealth, of Pakistan, Govt of Pakistan Publication, 1949. 46 .Legislative Controls Agricultural Market Produce Act of 1939 • .. Prior to- 1939, the marketing system of the former Punjab was notorious for a preponderance of malpractices,, Themost common of these irregularities concerned weights and measurements and marketing charges. Under the Agricultural Market Produce Act of 193:9, marketing ' committees: wer e estahlished to prescribe and control "trade practices within the market, to enSure that uniform weights and measures were v , brought into us e, to improve the conditions under which .agricultural pro duce is sold, to collect and disseminate reliable market price information among the producers, and to ensure that the producer gets a reasonable share of the ultimate value of his. produce. - The Act further stipulated that these committees must be pre- 1-' ' ' , . . pared to establish new markets when deemed necessary 'by the govern ment and to provide ttecessary facilities to .persons selling or purchasing agricultural produce within these ■markets. Market committees,’ ace or ding to the size of the market, are divided into two classes--A and B. An’'’A'1 committee consists of 16 ’ members' an d a ''Ba cemmittee .committee is assigned is determined by the government, based upon the volume of business done. . - At present 85" markets of the former Punjab are operating under this Act. 1 Cotton Control Act of 1949 Following the. division of India in 1947, a great deal of mixing of different varieties of cotton, occurred in West Pakistan. This, was the outcome of chaotic conditions which prevailed in the country in those days, Mon-Muslims., who formed the majority of the owners of the ginning factories, migrated to India and were replaced by refugees, most of whom were new to the industry., Cons.equent 1 y, the quality of cotton lint produced at the gins deteriorated and the reputation of Pakistan's cotton in the foreign markets was threatened. To cope with this grave situation, the Cotton Control Ant "of 1949 W9# pass ed;. The. more important provisions of this Act were to plan production of cotton on a. regional hasis, to ensure an adequate Supply of pure seed to the producers, to license ginning fac - !. tories, and to ban the transporting of cotton across zoned boundaries without a permit. ' ^ . . Under the Act, the main cotton growing districts of the former . Punjab- - Bahawalpur and Khairpur--were declared as "Controlled Areas'' and were divided into five districts on the basis of their Suitability for Andrus , J. K. and A. E. Mohammad, The Economy of Pakistan, Stanford University Press, Stanford, 1958. p„ 53. the production of a. particular variety. In the controlled areas, under the legislation, the growing of iDeSi cotton .was prohibited. . - The Provincial Department of Agriculture was charged with the responsibility for supplying pure seed to the cultivators and the mixing . of different varieties of cotton was declared a .serious ©ffprcSe., ' ; A Cotton Control Board was formed as an executive authority to enforce the Act. It was decided that in case lint cotton produced within an area included more than thredper- cent Desi variety, or more than tern per cent of ait unauthorised A'meriean variety for 'that-.:.area? the bale • was to be marked as "Mixed". ' . This has proved to be ijuite an effective piece of legislation. The quality of cotton has improved substahtially, and the Pakistan cotton trade has benefitted immeasurably. • The1 Act has been subject to criticism from some quarters, as is true with most legislation. One of the claims is that it creates many unnecessary restrictions, some of which may even hinder efficient work ings of the ginning industry• . . . Market Functionaries A variety of functionaries operate in various "mandis"(secondary markets ) of Vest Pakistan. They are ginners., government agents, ' * ■ cqmmiS'Sion agents, brokers, weighmen, changers, and palladars. The ; various functions performed by each of these agents are discussed in the section entitled, "Functions Performed by Qther Functionaries11 (Figure 7), : \ i ' ; Functions of Gotton Marketing : ^ ^ duality Determination : ; . Gotton lint is not sampled officially in the determinatidh of quality until after it has reached the terminal market at Karachi, At each change of Ownership a' superficial examination is made merely to determine the variety, ; Buying by first buyers in the complete absence of Quality specifications is possible only since they are dealing generally with illiterate produeers,who are .thus easily exploited, . \ After cotton is shipped, to Karachi and prior to its assembly into . lots for export shipment, it is then officially .sampled. The sampling technique is similar to that employed in the United States„ Each side ; of the bale is slashed with a knife and a. portion of Cotton extracted from p:' m :-/ \ ' ' ' • ■ : v each ppening, • • ' This sample is then wrapped, identified with a tag, and sent to the sampling room where the classer Studies it for color, foreign matter, and preparation. If the examination shows that the two sides of. the bale differ in quality, the grade is awarded on the basis of the poorer 50 MARKET FUNCTIONARIES GOVERNMENT COMMISSION MARKET GINNERS AGENTS AGENTS BROKERS LABORERS T t cn (n CO <3 CD CD <3 < < - I X X > > > O UJ <3 I- h- l- H CD O X x X Z < cr X X < Q U) * BROKERS HOUSE X o Figure 7. Market functionaries, by type, West Pakistan, 1959 ' : ’There are three sets of standards maintained by the Karachi dtitton Association-- working'standards, appeal standards', and reference standards. With the exception of one or two export agencies, who nor mally buy on the basis of the Karachi Cotton Association standards, all export business is done dn the basis of seiler types. /Many of the ' - exporters have a range of old and well-established types which, are popu lar with the foreign bnyera. \ . • - -a fp'';. :$ranspbrtatip^ .A;:'' 1 Transportatidn in WeSt Pakistan is hamper ed by a most primi tive road and railroad' system. The total mileage of roads in this pro vince is only 46,000 m iles, of which a m ere 7,000 miles are hard sur- id ' /''p m ;::/ Vp faced with the remainder ranging from fair to impassable for other . ' i - -Xr ' ''t: ' i ' : ' '' ' - 'X'X' ; • . ■ ' , - ,i :than,;fort passengerh.A i. . x;.- i ' ;x In the last 12 -years about 2,850.miles of all-weather roads and IjSQQ miles of secondary roads have been constructed. Some additional 1,8.00 miles, of new roads are .scheduled to be constructed, and 2,000 miles of existing roads improved under the government's 5-year plan. z* * Dunn, R .' P. , Cotton in P a k ista n and Indian Union, National Cotton Council, Memphis, 1949. p. 9. - V ; . x ' 2 Pakistan. First 5-Year Plan (1955-60), Gov't of Pakistan Pub lication,.; pp» .46, 48,6., • ; i ‘ Although the road system, in, general, is gractually improving, ’ connections; between villages are still very poor, leaving a vast majority of the producers with no direct access to an outside market. The railway network,. of which there is a meager 5,3.36 miles in > West Pakistan, is even less accessible to the average cotton growers.% , ' Financing, . • Ther e are two agencies of major importance in the financing of the cotton trade of West Pakistan:. They are the central cooperative banks and the commercial banks. / ;v ■- \ ''V'''' Central cooperative banks The central cooperative banks are well-scattered over the belt and finance cotton both at the ginning leyel and at the Karachi market. Their standard practice is to retain a margin of 30 per cent against seed cotton and 25 per cent against ginned and pressed cotton.. An aver age of the ruling market prices for the year preceding the date of advance . is' generally employed as the basis for,computing the base price in the .c:. ' ■ C : V • . 1 . : / . i: ■''VV ' areas comprising former P u n jab r " Ten Years of Pakistan (1947-57), Gov'tof Pakistan Publication, p. 1,65„ Marketing, and Finance of Cotton in Pakistan, State Bank of : Pakistan, 195% : p. 3T. Commercial banks , ' ' - . V : ' . . Commercial hanks advance very little credit at the gin level, and generally enter the business at the stage of transit financing. As soon aS the baled cotton is ready for shipment, the factory owner hauls it to the railway station and procured: a railway receipt against the shipment to Karachi. These railway receipts are .then presented to the banks as collateral on a bill drawn by th e gin owner in favorof either : Ms principals or his commis:sion house' at Karachi. ■ These bills are . .. ' of two- types - -coilectioh tails and discount billst ' Collection bills. Collection bills do not require any financing becaus e the banks, ar e us ed only as a media for conveying the bills and procuring the funds from Karachi. This itype of- billing Is us ed only by a few organizations who possess substantial amounts, of operating capital. The general practice, however^ is for the bills to be discounted. Discount bills„ The charges made for discounting receipts differ among banks. Commercial hanks usually discount on receipt of a bank • commission not exceeding’two- annas per 1,00 rupees. While the minimum has neyer: be On fixed, the average rate is 0. 06 (about $. 01) per Rs. 1©0. 00 borrowed. As Soon as,the cotton, arrives at Karachi and is stored in plinths . (sheds), it is customary for both the commission houses and the export , :' , : ■ £ / ^ ^ y ■ -y . : ^ - y . i . ' .y ^ ' -/■ • ' ( - ' The commis sion houses has been defined under s ection,,''Organ isation of Karachi Market'1. ; . - ■ ; houses to satisfy their financial obligations„ . To accomplish this they secure cash credit from the various hanks at Karachi. The Security against such financing is a pledge of cotton.stored at the plinths. The • banks generally advance credit up to 75 per - cent of the value of the cotton Stored. * ' V Hedging v 'p. ■' - ' : - To prdyide a continuous market and to facilitate cotton trading on a mor e stable basis, the Government of Pakistan pass ed an ordinanc e ’ in December, 1954, providing for the establishment of a Cotton Futures .Market to be iocated at .Karachi. Under this Act the operation of the Cotton Futures Market was entrusted to the Karachi Cotton Association, with the proyision that the government have four nominees on the govern ing body of the association. I : The "Hedge Contract'1 was implemented on February 28, 1955. The basis, of the contract was the N. T, roller ginned variety of fine quality, with all qualities of American cotton, both roller and saw ginned, being made tender able. •/ ■ - The Karachi Cotton Association operates the clearing arrange ments with settlements usually being made: on a weekly basis. ■Secretary, Karachi Cotton Exchange, August, 1958. - - Assembly and Concentration ; • The vColleGtloa: of seed cotton from individual producers is carried, out by a number of agencies. The more important of these agencies are . ' , Vr "* * ■ : actual growers, small producers (who collect and bring cotton for their fellow producers), village shopkeepers, landlords, roaming Tenders, petty dealers', cooperative commission Shops, rep res entatives of the commis - sion agent, mills, .and other merchants. ■ : 1 f A ,Actual grower wAy 1 . I . 1. ' . ' . ' ■ ; ■ ' ' '' 1 V' Before the enforcement of the Agricultural Marketing Act of 1939, ' farmers , in general, did not attempt to'deal .directly with .brokers in the ■ marketplace in selling their producfSt;. This was true because of the fact that broker s were noted for their abuses: of the' illiterates through exces - s ive sampiling, inaccurate weighihg, and the inflicting of excessive market-- ing charges,, : 1 . . ' k..;' 'h ' ; . I' l , . A . Today, the situation is greatly improved, and an estimated 70 per ceirt or more of West Pakistan cotton is brought to the m arket by the p roduc ers themselves. Sm all producers A '-’"p' : . ' ' ’ ■ ... Some literate peasants , to supplement their meager incomes, also deal in seed cotton. Through their visitations to the nearby markets, they ■ ■AA'/A - Al can keep well-informed- concerning market conditions. As ghaf, A. • Marketing Officer,, West- Pakistan ' Village shopkeepera . The village shopkeeper, who,is also a provision merchant and „ nimiey lender, collects :S:eed cotton in two different ways. ' A: farm er i33,ay hritig. B •SmaU. ^antity of seed cotton to his shop ; : to exchange it for the commodities of daily nse .such as tobacco, salt, • " oil, and sugar, or he may receive,an equivalent .amount of the produce from the farmer as a repayment on his debt. This, however, is of rela.- ; tively mindf importance sinee his, major activity during the harvest season is concerned .with buying.,the produce from the farm ers of his own village or neighboring yillages. A typical village Shopkeeper would haul about a ton of seed cotton., to the nearest market every fourth day during the peak, of the picking seaSdn, " -laShdiorxi ,;'A The landlords, who receive their share in kind, generally bring their'produce directly to the assembly market,. in addition to disposing .. of their own seed cotton, they usually sell the produce of their tenants, and frequently even that of neighboring small landlords. Roaming vendors f . A . During- the harvest Season, roaming vendors make regular visits to the / villages» They travel from door -to-door, carrying toys and candy which they hope to exchange for seed cotton, ' - "...A Petty dealers ■ ' . '% / Village artesans, including carpenters and weavers:, also buy ' cotton from, farmers. These small buyers are actually responsible for the assembling of a substantial amount of cotton in the canal colonies of West,Pakistan, They generally use their own pack animals for transpor tation of seed cotton to the Assembly market. Cooperative commission shop v The cooperative shops, or Sale Societies, which are registered . under the Co ope r a t i ve. $ oc i etie S Act of 1912, operate as commission agents in assembling and disposing of farm produce. These shops have lower marketing charges than regular commission agents and were very popular when e stablished initially , but have gradually lost favor, .due to corrupt practices amdng the - employees . : ' y . , ; ' : ' Representatives of the commission agents ... > ' Although this practice is not as common as some other means of acquiring seed cotton, same of the commission agents have representa- tiyes Tocated in the small villages to ptirchas e cotton directly from the growers. ' ; :• .■ '' \ / ... . • ' . Mill and other merchants . ^ome temile mills, ginheries , merchants, and other cotton huying ' . . firms also have representatives in the villages at the Sources of ' . production to negotiate directly with the producers and small dealers , in the purchase of seed cotton", : - i - i ' ■ . Distrihntion , - p The distribution system for Pakistani cotton has been outlined . from the point of production tO the two major points of consumption, domestic -millh, and export shipment in Frgure 8, As. soon as cotton is harvested it is‘taken to the nearest commer cial gin, where it is ginned, pres sed inter bales, and s ent to the Karachi market. Some cotton may be purchased directly from the producers;, by the representatives of both the domestic mills andmajor exporters, ' in which case it generally by-passes the commercial gin. Domestic ■consumptldh;,-j ;V;;: ■ i, :,::X ' ' r The consumption of cotton in Pakistan has increased from 1.2,25 per -cent in 1950- 51 to 66. 81 per cent in the 1957- 58 season. This increase is attributed to the rapid development of the textile industry following Partition. In the 12 years since Pakistan became a sovereign State, there has been a nine -fold increas e in the number of .spindles : operating to produce textile goods. * ■ ■ • Calculated from Cotton: W or Id Statis tic s,. Qua rterly Bulletin, International Goftoh Advisory Committee, Wash, , ti. G. , April,, 1959, PP, 15, 31. ' . 59 PRODUCER COMMERCIAL GIN KARACHI MARKET PRIVATE G IN * * PRIVATE GIN DOMESTIC CONSUMPTION EXPORT Some of the major exporters maintain, private ginning facilities, but the majority purchase through the Karachi market. Major textile mills generally maintain private ginning facilities, but also purchase baled cotton through the Karachi market. Figure 8. Distribution system for Pakistan cotton, 1959. Export trade ■ > r > , In volmne of cotton exports Pakistan is the fifth lar ge.st count ry of the free world (Figure 9). , ’ • ' ■ , Although Pakistan cotton is exported to about 40 countries in the world, the three most important customers are Japan, China, and Hong Kong. * In the 1956-57 season these three countries imported about 55 per cent of Pakistan's total cotton exports.^ A: ' With the rapid development of the domestic textile industry, the trend in Pakistan cotton exports has been on the decline (Figure 10). . : -y y ' ' ;::.y ^"'a inforination;; ; ' d\: : J'"'- Seweral different sources of market information are available in the Province of West Pakistan. They are radio, newspapers, telephon and telegraph,; government puhlications, other published reporta^And ., word of mouth. "" ''' : ;• t v t / v' :, ' V '1:,': Y. Radio . . ; Y ■ • ' : vY. -; Daily market information at the important markets is broadcast from all stations of the Radio Pakistan. . 1 Ciotton Situation^ of Pakistan Publications , December > ::Y 'y;:,Y , ^ Karachi Cotton Annual No. 2,0, Karachi Cotton Association, , 1956-57. p. .8, Section ll. , • h- 70 50 - CL 30 COUNTRIES Source: Calculated from Cotton World Statistics, International Cotton Advisory Committee, Wash. , D. C. , July 1959. Figure 9. Relative positions of major cotton exporting countries of the free world, by volumes of cotton exported, 5-year average, 1954-58. 62 1949-50 '50-'5l '51-52 '5 2-53 '53-54 '54-55 '55-56 '56-57 '57-58 YEARS ^ 478 pound net weight bales. Source: Cotton World Statistics, International Cotton Advisory Committee, W ash., D. C. , Jan., 1958; July, 1959. Figure 10. Volume of cotton exported annually, Karachi, West Pakistan, 1949-50 to 1957-58. Newspapers - .. ; : Anothe r imporiant s ource of market information is the newspapers They quote daily prices of different commodities for the important m ar kets of the Province, Telephone and telegraph ~ ; . ■ 1 • : :'v:'' ■ \ The government-operated telephone and telegraph system is also a major source of relaying market reports and pertinent information. . Gover nm ent publications ' '' - \ ' The government is s u e s certain leafletsy^bulletins, and reports which give information about Weather, supply, and prices. In Lahore, the Board of .Econornic Inquiry, a semi governmental body, also published daily,: weekly, monthly and yearly reports and bulletins» . Other published reports . : , Information is also dis seminated in the markets and feeding areas by the market committees. Rates:are posted in:the places of common gathering and are also sent to the important government and commercial offices. y 'V. ‘ Karachi Cotton Association and Pakistan Central Cotton Committee reports • ■=: The Karachi Cotton As sociation: and the Pakistan Central Cotton Committee publishes various reports on prices, supplies, exports., and , other aspects of the cotton trade. Word of mouth v- FarmerS- who visit the market frequently are perhaps the chief ,souree.s, of m arket• information to thdse residiiig in the rural areas„ Marketing and Related Practices of Growers f Transporting Cotton to the Gin : ' : Seed cotton is brought to ginneries either directly or through ' local as semMy markets situated near the, ginning factories, by'various types of conveyances. The method of transport depends largely upon : road conditions, The most common means employed in the transport of seed cotton from. the. farm to the gin'.are pack animals and bullock carts, ' ;• .Ik' " Pack animals ^ y' v \ . -- In the most primitive areas cotton is moved to the gin oh the backs of camels. This meahs Of transportation is typical thronghqut the districts of Jhang, Multan, Gujrat, Bahawalpur, and in most parts of former Sind. In these districts, there is also some transporting of cotton by donkey. Transportation charges range from Rs. G. 03 to ;J Rs. 0. 06 ($. 007 to $. 015) per l.OO pounds per mile, ' ' Bullock cart . - ■ " -. '• ' - In those areas where roads are satisfactory, the bullock cart is the normal means' of iransp.ortation.; In Byallpur, Montgomery, Sar godha- 65 Seed cotton being transported to the gin by bullock cart. In former Sind the camel is the chief means used in transporting cotton to the gin. and Lahore districts of We.st Pakistari, a major portion of seed cotton is transported in this m anner„ The carrying' capacity of a buliock. cart . is between three-fourths to one. and one-half tons, depending upon the type of road and the condition of the cart. The transportation char ges ' are. usually the same as for pack animals j . \^']h.;areas\Whdrh.:raa^::;arie. adequate, motor transports are occ'a- sionally employed. Since the rate for this means of transportation is exceedingly high, only about 10 to 15 per cent of the seed cotton is hauled by this m eans. v:"r • h;: . :„v ; .y ' . With the exception of c ertain areas in former Sind, cottpn is not : transported by .rail prior to ginning. After s eed cotton is ginned, it is ■ then hauled to the nearest railway station for shipment to Karachi. The railway freight charge, for hauling one- bale of cotton (392 pounds) frorti Lyallpup to Karachi is Rsi 14.25 ($3.00). : ■ ' ^ ' Functions Performed by Oinners , '• • 'a: :< i . : i : ;:>■ .< . Ginning : . . 4; . . ■ -y;':.: . . , : Vf ■: ; Before cotton reaches the ultimate consumer, it. passes through a nurnber pf processes and middlemen. Of all the processes., cotton ginning is perhaps the most important. To convert cotton fibers into fabric or. other useful industrial goods,■ it must first be separated from Separation of lint from the seed was originally accomplished by hand. Before the invent ginning machines, the removal of the seed was a very tedious, task . On an average, one person, could separate only two or three pounds of lint per day. The earliest machine us ed for: ginning purposes was the primitive "Charkha" used in India centuries ago. In its simplest form, it consisted ; . ' ■, . ; ' • of two small rollers, one of wood and the other of iron, geared to move in opnoslte directions. The rollers were turned by means Of a hand crank attached to the wooden roller. The..seed cetton was ginned hy hand feeding it between the two rollers. The lint passed through the rollers, leaving the seed to drop behind on the feed side. In this manner approx"-: imately 12 to 16 pounds of clean cotton could be ginned per day, and the women who performed the task receive a daily wage of Rs,. 1. 00 (about 20ph Even today, these primitive gins are still: used to some extentf , ■ The Partition of 1947 had a very serious retarding effect oh the - ginning/indus try; of 'West. Pakis thn. Prior to that time, the gins were g . operated, by Hindus and Sikhs - who abandoned the plants and migrated to . India- during Partition. Several years were required to get.this important s egment of the industry hack Onto an eyeh keel. y - . f 68 The primitive "Charkha" is still used in many places to separate the seed from the lint. A typical roller gin currently in use in West Pakistan. Currently, there are 446 ginning and pressing factories in West , ; 'Pakistan.' ^ Gin distribution throughout the province .by district, type, and number is shown in Figure ll. , ^here are three types of power operated gins used in the West Pakistan--Single roller, double T o lle r , and saw gins. : \ At the present tirne in West Pakistan, there are about 9,268. single roller .gins.,• 1,793 double roller gins, and 433. saw gins.2 These gins, for the mpst part, have little or no Special cleaning equipment. Roller gins are.more gentle to the longer, finer fibers, and hence, are favored in the ginning of the longer staple varieties.' Single roller gins V, .:1\. . .'V. ;■ / ' The.majority of gins, in West Pakistan are of the single rdilek type and were either British or locally made . Per -hour output of a - .Single roller gin is about 40 pounds of lint. ^ These gins are limited , mainly to the ginning of Desi and naked-seed varieties. 1 Paroqui, H. Mi, Agricultural Marketing in Pakistan, Amin Book Co. , Karachi, Pakistan, 1958. p. 96. ; : ’ v, " “ Karachi Cotton Annual Mow ' 2Qy op, cit. , p. 2. ;; e • ■ ‘ ■ - King, W.: Cf ,■ Development in the Cotton Industry :of Pakistan Since 1949, U. S. Department of Agriculture, Washington, D. C ., April .7. ' ? ; ; : '■' ' p; ,;4 7 - in • LAHORE v 1 u 1 • o.f 77 LYALLPURX x -5 5 e o-t536 \ 5 - 4 X- 34 \ y 7-57 x-4-SHEIKH PUR A JLTAN MONGOMEFTy 0 .5 0 8 *■'d -1654 * 0-1127* "y O -SINGLE ROLLER X- DOUBLE ROLLER 7 - SAW-GIN Figure 11. Distribution of ginning factories, by type, number, and districts, West Pakistan, 1956-57. 71 Cotton lint is carried in armfuls from the gin stand to the press. Bauble rpile r gins ■ . ' Double roller gins can successfully gin all varieties of cotton, grown in.the Province, This type has certain advantages over the . single roller type,. It . consurnes'lese' power, its ginning capacity is 50 per cent greater (60 pounds instead of 40* j, and it turns out a compara tively cleaner lint. There are presently about 1,793 double roller gins rn.th.e oountry, : iily:.. " 1 'v ' Saw gins. a " : - ; ' v "' ' ' ■ ' a " vy ai'' 1 ai '/y:" There .are some 433, saw gins in the whole of West Pakistan, and . about 25 per. cent of the total crop of West Pakistan is saw- ginned,y Most, , of this, equipment was manufactured in the United States and practically all saw gins are equipped with line-drum cleaners, , y Saw-ginned cotton grades, better and generally commands a pre mium of six. to seven p er cent in the market. The government of Paki-,:. .. atan, while establishing the base prices in 1953, fixed a premium of Rs, 3. 00 ($, 73) per 100 pounds for saw-ginned cotton. Seed cotton ia generally delivered to the gin in large burlap bags which are weighed on balance scales, emptied, and the cotton is segregated ^ Roberts , f , J,,, "Does Exces s ive. Capacity Exist in the Pakl- stan Ginning Industry1', Paklstah. Cotton Bulletin, Publication of the Pakistan Central Cotton Committee, 1954. : ' 1’ ' ^ y,/'- y y -.'i''.. . King, W, C. , op, c it,, p, .7, 73 The indigenous method of spinning is still commonly practiced in the home. 74 - by variety in piles on the ground to preyent mixing during the ginning p r o c e ss, -y.y / Before th e seed-cotton enters the gin., it is put through cleaner- op enerS* These openers remove a substantial amount of dirt and trash* Following this initial cleaning step, the seed cotton is brought to the ginning floore Here, it is fed between the. rolls, in the case of roller - gins, by female operators, one womanto a stand,, The lint, which has ; been separated from; the seed, is then picked up manually and taken to the storeroom where, it is weighed, deppsited in the press box by hand o . i v'i.; ,i and tramped, manually. When sufficient lint has been accumulated, it is; pressed into: a bale with a density of about 28 pounds per cubic foot. Pakistani c.ottpn hales are completely covered with burlap and tied out with 10 to ll steel Bands. The tare amounts to approximately eight pounds, giving the bale a total gross weight of approximately 400 —-A Iv . .V;,v:: Handling of Option ; . ' . ; ■ ; ' " \ . A ginner is forbidden by Taw to s ell s eed uhles s he is acting as . an agent on behalf of the government. After the seed is separated from the lint, it is either turned over to the government or crushed into cottonseed oil. Giuning factories in West Pakistan are usually equipped with Oil expellers„ , • ; . • Cotton Buying Seed, cotton, im many cases, never pS.sses through a coneentration market tint is hauled directly to the ginning factory. In such cases the grower deals directly with, the ginner, thus by-passing an intermediary. Where the services of a ■commission agent are engaged, the grower hauls his. cotton, to the general vicinity of the gins, and the commission agent invites representatives from the respective gins to bid on the lot, com petitively. > ' Cotton Selling . . ' >: There are two alternative channels for the flow of baled cotton from the gin. One is to the dome Stic textile industry and the other to Karachi where it is concentrated mainly for export. Since most of the . textile mills of the Province have their own ginning and pressing facili ties, very Tittle cotton from privately-owned gins actually moves directly :tp- dom estic te x tile m ills . V ; .■■..y.'; y Many of the important export houses also own or control ginning factories. .; Howeyer, they cannot depend Solely upon the output of these , to satisfy .their needs and, consequently, they, have, buyers circulating throughput the cotton he It during the harvest, season. 76 At the gin, seed cotton is weighed on a beam scale and stored in the open awaiting ginning. Three farmers await the buyers price quotation at a prim ary market. Services jpgrfbrmefi by'X^her Functionaries ' v-\ Government ., • -- , ^ , Labeling of bales ' • ■ , Each bale is given a pre;Ss -mark at the gin as prescribed by the Cotton.Control Act of 1949. An example would be: ■; . . v;;:;::,w p ^2:5 .:,z89F:'v..: ;: ^ // / ' '% ■ A:::58:.^MT9 , WP stands for West Punjab; No. 2 5 is the press-mark allotted •, to the factory in which the bale was pressed; 289F is the variety. of ' ' t .cotton contained in the bale; 58 signifies the year in which the bale was v press ed; aind 3679 is the serial number of the bale. This labeling is ■ i done in the presence of a government cotton inspector. * • Sale of .planting seed . : . . . . / :;i The Depaftment of Agriculture in West Pakistan has seed agencies in the Rawalpindi,Multan2 and;■Lahore.Divisions. These agents are private vendors who Sell departmental, seed to producers on a commission hasisv Similar' seed agencies are being set up on. the Bhawalpur and certain Other divisions of West Pakistan. As yet, communications are insufficient for . the;establislnneht of such systems in Hyderabad and. Khairpur divisiottSy; Covernment offlcial emp^ under the Cotton Contr ol Act 9 • ’ 1949. .. • Private shopkeepers are unable to store seed safely and satis - ' iactorily with existirig facilities. In ;certain large towns such as Lyallpur there are outlets: owned and operated hy the Department of Agriculture to distribute cotton seed among cultivators„ Farmers in the former Punjab frequently obtain their .seed, by ginning their- own Seed cotton , through the use of tlie indigenous head gin method. , v t Arhtya (Commission Agent) The most important type of intermediary in the market is the ■-"AtC-.p. pAAk - A'. Cjh- ■■■■... :'V'C.vkt. k'. - ■■ ' commission agent. There Are three kinds of commission agents - -Kacha, Pacca, and.Kacha-Pacca. Each receives a commission based on a per centage of the sales price. A ■ k. v: . " Kacha ■ The Kacha Arhtya is a middleman dealing purely.' on behalf of , the vs ellefy : :He t does not take titie. ' (tiis duties to the Seiler are to secure the highest possible price, arrange for correct weighing, check that the ifA; vvk :k k; /V { A k : - • ' .... buyer does not receive any undue allowances, had see that payment is made in full promptly after the transaction is over. This agent usually ’[email protected] one or more la r ge purchasing firms and often buys through a Kacha Arhtya rather than directly from the producer. ' ■ ■ V ■ ; " A j ':’= ■ ' ;;.. ■ .;v..;; t'kk; :k; . kik; .7:9': Kacha-Pace a This intermediary may act in. behalf of both buyers and Seilers, Dalai (Broker) i'y" ' ; There are many types of brokers, operating in the various m arkets1 . ; throughout the country. The most common are the ordinary broker, . surety broker, and house broker. They, too, are compensated on the basis v."/;.:. .... / ..yty ,.r'y ' of a percentage of the sales .price, '. '.'f:','',.-1. f ■ , Ordinary br.oker . , ; ,y‘, ; ■ , ,,vp; ■ ' This Individual makes purchases bn behalf of the ginner at prices . fMed and in duantities determined in advance. His functions are to con- f \ ; >::v : : v:; : :: tact both buyer and seller and to bring them; together, to. help the producer dr ginner to transport s eed cotton to the ginnery, and to make arrange - . mehts for advance payments to the producer. t ’ V - Surety ■broker '.1 'f:.' " T P ' i;:; The surety broker usually performs the same functions aS the ordinary broker but is- liable for. any Toss which may be suffered by the , g in n e r as a result pf bad quality of seed cotton delivere(jo ; House broker , 1' ':' "i /" / : ■ :( - / ' ' ; : V' This middleman p e r f orms functions of both the of dinar y and surety brokerS, hut is m ore G loselyxas Sociated with the ginner. He is expected to possess a. technical knowledge and have practical -experience ... relative to the cotton trdde. V Tola (WeighmAn) > A tola merely performs the function of weighing seed cotton. He• is employed by commission agents and is licensed. {Dhangef A The changer performs the sole .function of assisting in weighing and handling of seed cotton. His. charges, are borne by the sellers. ;;■ . v ' i : .v ■.f’hllad arS : ■' ■ ■ / . The only function off he palladar is to: fill, stitch, and stock the . bags. Operation of the Karachi M Upon the arrival of cotton at the Thole Produce Yard in Karachi, selierS authorise interested b u y e rs to draw their own samples. :The.: .-f buyer then proceeds to. the Storage area and draws a sample, usually five ' f t " . ' : ■ ■ ; pounds, from each lot of pne hundred bales. He identifies the source of the sample by marking the bale from which the sample was removed with his own stamp. If he eventually purchases the lot, he takes delivery on W'.' 81 Cotton bales awaiting storage at the Thole Produce Yard in Karachi. the basis of the quality of this Stamped bale. He may reject any bale which does not meet the quality of the stamped bale. Spot business is conducted at a fixed price, or at so much "on" or ''off'' the January, March, May, or Juiy futures. If the price is not fixed, it is usually left up to the seller to call for a fixation at any time during the period speci fied in the contract. n .. . ^' There Are three principal types of organizations dealing in cotton at the Karachi market. They are commis sion hous es, commis sion-cum 1 export houses, and export houses. " . ' ; Commission Houses Commission houaeS/ s ell option -ginned in their own gin plants , purchased from commercial gins, and a certain volume consigned to them for sale by commercial ginners. Commis Sion-Ctim Export Hous es hi addition to the functions: perform ed by an Ordinary commission house, this type of firm also exports cotton to foreign countries. Export Houses Export houses are the chief exporting agencies. They may have their own ginning factories in the interior of the cotton belt, Or they may obtain cotton through their r epresentatives, as described earlier. ■ * Ivier-Ghandising . \ The. tibSt of merchandising cotton consists of transportation, marketing charges> ginning, storage, and miscellaneous costs. Trans po.rtation-costs .fy' :.:r The cost of moving one bale equivalent from a village near the •Lyallpur market to Karachi, for example, has been chlculated to Approx^:,' imate Rs, 22.87 ($4,81), Table & . V ' ■ ' ' ■ ; f , > v; , Marketing tihatges v -; ' : ; vf ; . . Marketing charges at an assembly market, Lyallpur for example, average approximately Rs„ 8. 084($1.'70), Table 7. Ginning noSts " ■ T The actual Costs of ginning were obtained from records maintained at eight gins. The average per-bale cost for these eight •estabRshmettts; was. Rs. 25' ($S.,25), Tnble V fy 'f f; :' ' : y f . : ' •Storage costs . . - r;. . \ The volume of cotton stored at the farm level is relatively .insig nificant and hence,. not worthy of consideration in c omputing St or a ge 84 TaMe 6, Goats of Transporting One Bale Equivalent of Cotton from Tillage near Lyallpur Market to Karachi, West Pakistan, 1959- C6st Point of Origin to Destination^ Rupees■ Dollars * Prorn. village to Lyallpur m arket, means of transportation bullock cart, ; I 4. 50 1 ■ 0. 95 @ Rs„ 0, 45 per mile per bale (lint) 1 , - t .i.. . f Prom Dyallpur mark et t o railway Station, I ! Rs. 0. 37 per bale (lint) r 0.37 ! 0.08 1; ■ «. Prom Lyallpur railv?ay stationrto 1 .1 1 f 14.00 " f 2. 94 1 I From Karachi market to ship, T' 1 Rs. 4. 00 per bale (lint) ' i ' 4. 00 0.84 •:r ■ " 1 '. Total .22. 87 4, 81 Actual charges are Rs. 0. 03 per mile per maund of Seed cotton. Con„- verting maunds to pounds and as suming an average turn-out at the gin of 33 per cent, one bale equivalent of cotton equals 1,176 pounds. 4. 7 5 rupees equal $1. 00 (based on official exchange rate as of Septern- her 14, 1959k , / ' Bource: Personal inquiry. 85 Table 7* Marketing Charges for One Bale (392 lbs. net weight) Equiva- . lent of Cotton at Lyallpur Market, West Pakistan, 1959 Cost Charge Items i ' t ■ . 1 Rup e es ^ f, Dollar s ; ' i ; ' ” - 't . : ’ ' Coitimissioh • i: - i r:v>; v .. @ Rs„ 1 lo 00 per 100 rupees gross sales ’ 4, 71 1 1. 00 .. ■ i - Brokerage t . . f ' , @ Rs, 0, 12 per 100 rupees gross sales , 58 9 ' ■. i z ' ; f ' '/ I Weighing •! ' - •_ . @ Rs, 0, 25 per 100 rupees gross: sales j 1. 17 ' ■ .24 :( ; . ■ ■ t. - ' t : Labor t. , t ' . ■ ■ ’ . @ Rs„ 0, 36--changer paid @ Rs„ O. 12 per 1 1 100 rupees; palladar paid @ Pvs„ 0.23 per ' 1„ 62 ' , 34 . ; lOQ rupees - - . ' • ■ ^ - - • r ■ ; • t - ■ ' ■ Total ^ 8. 08 ; 1.70 t ' i 4, 75 rapees eqnal $lo 00 (based on official exchange rate as of Septern her 14, 1959b ; : • ■ Source: Secretary, Marketing Committee, Lyallpur. 86 Table 8. Cost of Ginning Cotton, per Bale, Based, on Average of Eight Gins, West Pakistan, 1959. ^ , .1 Cost • t ' t , ■■ ' Cos t Item n> Rupees i Dollars . /("a ' ; . Fuel, supplies, repairs, and maintenance i 13,06 > : 2, 74 • ■■ . f, l ; Salaries and wages ' ' y 7, 00 : -X ;"i» 47;:':: ' : ’ i hatereSt and depreciation 3, 27 ' 0, 70 i f : ; , - Miscellaneous , X 1.67 1 0.35 ■ i t ■ * ; ’ 1 ' ' - Total X 25. 00 ' 5.26 T ! 1 Bale equals 392 pounds net weight. O ^ " . 4. 75 rupees equal $1,00 (based on official exchange rate as of Septem. her 14, 1959). Source: Personal inquiry. 87 Each factory has its own make-shift warehouse. When cotton is .Bold to a buyer, the ginnex usually makes no storage charges for the first month. Each succeeding month during which the cotton remains on the gin premisess a charge of Rs„ 0* 24 ($„ 05) per Pakistani bale is > levied for storage. At Karachi the storage cost for holding cotton in the plinths comes t-6 about Rs« 1. 82 ($« 38} per Pakistani bale. This is inclu sive of insurance and interest charges„ 1 Miscellaneous costs Sales taxes, and other miscellaneous costs amount to about RSo. 16 ($3» 36) per bale. Total merchandising costs , . The total merchandising’costs consisting of transportation, pro- cesSing, handling, and storage from the source of production to the , export market from a village near Tyallpur to: Karachi, for example, ; . would approximate Rs. 74 ($,15. 57), Table 9. » Personal inquiry from the Secretary, West Punjab Ginners Association, Lahore. . 88 Table 9„ Total Merchandising Costs Involved in Moving One Bale of Cotton or its Equivalent from Village near Lyallpur to Karachi, West Pakistan, 1959. * ■ :■'> \ ■■ ■ ■ : ' _ " ' ' r Cost Go&k' Sem. •. ■.- ■ , .. r ; . : ■ i Rupees Dollars ' - t ■ Transportation - ■ 1 ! 22. 87 ' x ; 4 82 I. r Marketing char ges f 8. 08 1. 70 ; - f t Ginning i _. 25. 00 r 5. 26 ■ - _ t " i : . Storage : . ' . i 2.04 r . 0. 43 ; ' ; r ' , Mis cellaneous . - V. 16.00 -: -V: 4 3 6 ■ ^ '' . . t ' : - " - •i Total , - ' i 73. 99 ■ '*:■/ 15.57 '■ r t . ■ i Bale equals 392 pounds net weight =, 2 .. • 4« 75 rupees equal $1.00 (based on official exchange rate as of Septem ber i4,1959V . ■ - /f. -.. , . ■ . ■ . ' • Price Differentials for Differenc e in Quality Certain of the cotton growing areas of the Province are noted for their production of superior quality cotton. Because of the increased demand for cotton produced in these tracts, producers receive higher prlc e$ (Pigq.r e 12) Variety 289F produced in the Khanewal tract, for example, is noted for its consistentiy higher quality and hence, receives a premium of about 'RsV « 013 ($«, 0027) per pound over Montgomery or other areas producing the Same variety, : Some varieties of cotton grown in the cotton belt of West Pakistan command higher prices in the market place than do, otherS as indicated ;; in Figure 13;, hh'/' Dy:;:; ; Saw-ginned cotton is generally preferred over roller-ginned, and consistently commands higher prices (Figure 14). Problems, production The production of cotton in West Pakistan is hampered by numer ous problem areas. These include cornpetition both from other cash crops and from synthetics, low per-acre yields, low soil fertility, inferior quality of seed availabie, heavy tolls from insects and diseases, floods. 0.440 KHANEWAL 0 .4 3 0 MONTGOMERY 0 .4 2 0 O 0.410 0 .4 0 0 (T 0.390 0 .3 8 0 0 .3 7 0 0.360 LU 0 .350 0 .3 4 0 0.330 0 .320 0.310 0 .3 0 0 FEB.JAN. MONTHS Source: Calculated from Market and Prices, Gov't of Pakistan Publica tion, Nov. , Dec. , Jan. , Feb. , and March, 1956-57. Figure 12. Comparative average monthly prices of seed cotton, variety 289F, Khanewal and Montgomery m arkets, West Pakistan, 1956. 1.200 ------PUNJAB 4F ------PUNJAB LSS ------SIND NT ...... PUNJAB 289 F LU 1.060 1.020 > 1.000 LU 0.980 0.960 0.940 0.920 0.900 Average of both saw-ginned and roller -ginned cotton SEPT OCT NOV. DEC. JAN. FEB MAR. APR. MAY JUNE JULY AUG. MONTHS Source: Calculated from Karachi Cotton Annual No. 20, Karachi Cotton Association, 1956-57. Figure 13. Monthly average spot prices for cotton, by variety, Karachi, West Pakistan, 1956-57. * 1.280 SAW-GINNED 1.260 ROLLER-GINNED 1.240 1.220 1.200 1.120 — 1.080 1.060 1.040 1.020 SEPT. OCT NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE JULY AUG. MONTHS Source: Calculated from Karachi Cotton Annual No. 20, Karachi Cotton Association, 1956- 57. Figure 14. Monthly average spot prices for cotton, variety 289F, by method ginned, Karachi, West Pakistan, 1956-57. 93 .salinity, and waterlogging of the soil, an unsatisfactory land tenure system, and the lack -of satisfactory sources of production credit. Competition with other cash crops In the' canal-irrigided; areas of the former Punjab, competition between hugar Chnet and. coft^ is very keen. Cotton, although still the most important cash crop in these tracts, is not increasing in acreage as is true with s ome other commodities. During the eight-year period from 1947 to 1.955, the acreage devoted to cotton fluctuated irr egularly, exhibiting no pronounced tendency. Sugar cane, on the other hand, showed a definite upward trend, resulting in an 89 per cent increase in acreage during the same period (Table lOj. This rapid rise in the area under sugar cane can be attributed to Such factors a# relatively lower prices, lower per-acre yields, and higher costs of production of cotton; year-round employment in sugar cane production; and an unfulfilled obj ective of bec oming s elf-sufficient in supplying the nations1 sugar needs. Competition with synthetics ■ ' Competition to cotton from synthetic fibers has greatly increased, replacing the natural .fibers in the manufacture of a wide range of textile products. This rapid expansion of the man-made fiber industry has definitely had an adverse bearing on the demand for cotton in the world Table 1Q» Acreages Demoted to Cotton and Sugar Cane in the Former ' Punjab PrOyince* West Pakistan^'iS47-l955e ; d S eason ' i Acrea.ge" i~ Cotton; Sugar Cane ■ 1 tbQUgaridB , . » " * thous ands : -■ ■; t I :.:/ ? 89: ■ i94S-:49: 4;r ■ ,1 ,5 7 7 ., ■ 304 T ykf: 1 9 4 9 -5 0 ; /t '1 ,5 5 0 ; < : '/ Oso :; ' 4 r ■ i ; ; 1.95 0-51.;/.; , i ■ ; t,7 i5 ;; .! 5 55/ //. t ■ ? / - -/> - : 1951-:5Z% f ■ 1,664 ", f; ■. 335 f. i :1952-55/ !.■ 1,907 i 344 I r 195S -54 ! : 1,754 ! 475 / r :1 9 5 4 -5 5 .■■.1 1,641 i ■ 528 ' i i , ^ i Source: Season and Crop Reports, Gov't of Punjab Publication, ■■ 1948-19557 /'■ /' 95 market .and cotton produGing countries like Pakistan, Egypt, and India may eventually lose their continental market. ^ World production of rayon and other man-made fibers, in the year 1957 totaled 6. 339 billion pounds (about 15 million 500 pound bales) as compared to only 2C 145 billion pounds ten years ago, ^ The future of the cotton industry hinges lar gely on such deyelop- ments as price stability and increased utilization of the fiber. This is extrernely important to a country like Pakistan, which, has to meet the situation not only from the standpoint of safeguarding its domestic textile Industry, but from a position of being so heavily dependent upon the com modity to earn direly needed foreign exchange. htpyf .per-acre yields ' ■ ■ . . ' j Per-acre yields. Of irrigated cotton in Pakistan are admittedly podr when compared with cotton grown on.irrigated, lands in most other countries, of the wbrid. Comparable yields, for lint cotton are Arizona• • 1 T The Cotton T rade journal, The Cotton T rade Journal, lac., . Memphis, I 959. p. 97. ^ EoCo cit. (Uiiited'States) 1,086 pounds, Egypt 448 pounds, and Wnst Pakistan 183 pounds p6r acre. ■>••• '.■ - • . - . ' V Liow yields per-acre of cotton in the Province of West Pakistan can be attributed to numerous factors. The most important of these are inefficient methods of production, low soil fertility, poor -quality of seed used, heavy tolls from insects and diseased, floods, salinity and water logging of the soil, and an inadequate land tenure system. Low soil fertility ’ An insufficiency of farmyard manures , high costs of commercial fertilizers, a limited water supply, generally low cotton.prices, and lack, of capital all contribute to the problem of low soil fertility which plagues this nation. Inferior quality of seed a v a ila b le - Poor quality of seed is the greatest single factor responsible for lOw yields. At present, the,Department of Agriculture in West Pakistan lacks adequate facilities for production and distribution of tested and The Federal Chop- and Livestock Reporting Service for Arizona, Agricultural Marketing Service, U, S. Department of Agriculture, Phoenix August 1.2, IpSS:, ^ Five year average (1954-55 to 1958-59), Cotton World'Statistics, Quarterly Bulletin, Ihternational Cotton Advisory Committee, Wash., D. C. April, I 959. '.p.:.'23,,, . . , ' " ’ f'" . - approved planting seed. Farmers throughout the cotton belt continually pp : ; v^P.;P,p: . P::;: : ^:;p: V::V,v: ^ p p -P ' :;:V^Pp; complain that the se ed aval table to th em is ne ith e r pure nor viable. ■ p .Toll from insects and diseases p ■ .-p; Cotton in Pakistan is subject to; attack from a multitude of differ ent peats and diseases. " In the former Punjab, loss es to the total cotton crap amonnt to ahbdt 30 per-c erit annually, while in former Sind it is P much higher> • . p p-; -p/ Moods Floods have become a continual menace to West Fakistan. Every year thousands of acres of land are "inundated by floods which wash away not only the crops but also a portion of the top soil. Salinity/^ ■ pp; p • 'V r f p ;Pp Salinity and waterlogging, ever-increasing problems, in the pro duction-areas of the Province, account for the withdrawal of tremendous acreages of irrigated cotton land each year. This results in not only J lowered total productions, but also in reduced per-acre yields in the newly.afflicted areas. ; p:P-- - . ;■ v.v: p. : :p:: Land tenure system ' ~ ^ ' ' The present land tenure system of the Pr6vinee is both defective and wasteful,,. The relationship between tenants, and landlords is very - ' pdbr, offering the opportunity for exploitation of the masses by a few ' \ well-to-do entrepreneurs.. The clamor for a land reform has been long : and loud, i v ... ■' ’:.7 - 'f " . ■ :v:'' Inadequate Source^of production "credit . .i f :' . ; : - ■, v-:;.1;;. . idd-d The poverty-stricken farmers of West Pakistan are highly • /e ; a -dependent upon some source of credit.to'finance the production of theird ; crops„ Present Sources of such credit are inadequate. The village - shopkeeper, now the major source of working capital for cotton farmers, demands repayment strictly on his own terms. This usually consists of payments in kind at time of harvest, with the lender acting as the sole determiner of the market value of the cotton in question^ .. Marketing The marketing system for cotton in West Pakistan is also j. encumbered with problems leading to inefficiencies, waste, higher costs to consumers, and lower returns to producers. Chief among these • ■ ; problem: areas' are.inadequate transportation facilities, lack of market ,.d : - information, inferior quality of produce available for sale, poor harvest-, ing practices, careless handling following harvest, poor ginning practices, fraudulent practices at the gin, surplus, of intermediaries, other fraudu- letit marketihg^practicee5> inadequate storage and wa.rehousing facilities, lack of grading- and stajidardlsiation, and lack of credit facilities. Inadequate transportation facilities , '■ - v ' ' - transportation in ifest Pakistan is hampered .by its primitive roa.d and railroad systems = The mileage of roads in this prdvince iS; only 46,000 miles, of which a mere 7,0:00 miles are hard surface with : ' the rernalnihg ran from fair to impassable for other than foot passen- gerS. ^ Railroads contribute only 7,000 m iles more to, the total transpor- tatipn 'net#brky 'h ' , - ,: - •' % . a : -■ '' v;:; , . a: ; ' • • e ■' ^;a'v ;■ ‘ ''' Commuhications within the yillageSaQr between, villages and the assembly market are grosely inadequate. In:most cases a producer has no direct access to the market. Only a few of the more fortunate villages enjoy-th e facilities of a well-mhintained hard-surfaced road,. . ; . a;---;:;, " . /."f"'":' -'.a', . -a a- P,..: fra, ; :MeanS of transpbrt used in hauling seed cotton or various ether agricultural commodities from the farm to the ass embly market are most primitiye. Transportation:to the railroad centers, where cotton is . ashetaabied:for, Shiphrent tp the Karachi market, is also in. Short supply at the peak of the harvest S®aS on. . f-: :a.. : a v wc ^ Duhh, R. P, , op, cit, s p» 9. * 1 ef ArEona Ubrai^. 100 liack q£market information ' .' •" .. ; . : , ” 'X : . . v : West Pakistan's marketing system lacks adequate and anthenticated sources of market information, Farmers, who visit the market frequently • are perhaps the chief .source of market information to their neighbors living in the rural areas,. But the illiterate and ignorant producer is often misinformed by these "reporters”, who are. themselves engaged in cotton hauling or in actual trading,. ; ■ ' ' Daily market quotations at important markets of West Pakistan are broadcast from Radio: Pakistan* This medium, however, is of little ml value to producers in the rural areas. Newspapeis prevailing in the different markets, but again few farmers .can make use of this information since they either cannot read or do not have access to a current paper. : ./ , .k ’ ■ The government of "West Pakistan also publishes certain reports; bulletins, and leaflets giving prices and suppiy information on the differ ent markets throughout the country. But these are issued too late to be , of any real yalue to a farmer in deciding when to sell, . Inferior quality of the produce available for sale - . / Although the Cotton Control Act of 1949 has been influential in : ; alleviating the situation, still West Pakistan'cotton, because of impurities and. athnixtUr es, has a pObr reputatibn in the m arket place. ; ; 10.1: /- At the farm level, various factors are responsible for the unnec - . - v., . : . :.vt t : ' ''t es s ary deterioration of quality. ■ Poo rh a rye sting practices. v:; .y : 'r.v;:.. ■ Careless remoyal of cotton from the bolls results in the; inclusion of a high percentage of lebf trS.sh vdilch lowers the quality. ; q / Cotton picker s of the cotton belt of West Pakistan continue to follow the practice of piling' seed cotton on the ground/and thus incorpor ate an unnecessary amount of dirt and other foreign matter. ; After the final picking, the seed cotton which has fallen on the ground during the picking process is picked up and indis criminantly combined with the earlier pickings which often contaminates the whole ; ■' lot. .PgA/yc v;. ■ ■ ; ; ' • ■' ; - : V" . ’ : 'Generally, producers are not involved in deliberate admixture, ..: ‘ ' In'case of cotton, the chief offenders are ginners. . -t:'■: Careless handling . : y' . . - ^ .. ' While feeding the gin, seed •cotton is. often carelessly thrown over the knives, dr rollers, and falls into the lint. Frequehtly, the side walls pf the gin are loosely fitted, which provides further access for seed cotton to be combined with the lint. . • . Following ginning, the lint is carried in armfuls to the press box. That which falls to the ground is scooped up along with any dirt which • clings to it and thrown into the press„ : . ' Poor ginning practices . ' yv, :: ^ ; ,v/; . The factory owners:, who in most cases are allotees, pay. very little attention to the maintenance of the machinery. Conseqnently, many gins are in such states of repair that they turn out a most, unsatisfactory product, resulting in continual complaints from expcirters at Karachi. Malpraetices . ' ; V Fraudulent ginning practices are common. Included among these - are the deliberate mixing of yarieties and the addition of for eign materials ■ and heayy objects to add weight to the bale . Thes e practice s have been less prevalent, however, since the enactment of the Cotton Control Act of 1949. ' ' - ■ ' ' ' Multiplicity■ of intermediaries , '-'p . . , There is a surplus of middlemen involved in the movement Of cotton from the farm to the ultimate coasmmer. This results in exces sive service charges which are manifested partly in the form of higher .costs to the cons Turner, but perhaps more pronouncedly in lower returns to the producer, p - :'p‘ . Fraudulent practices in the m arket p pi-.v , ,;: .4 ;:p:P: ;• Many and varied methods are employed to deprive the producer % .Of a fair return for his product. Inaccurate weighing practices are com mon. Illiterate farmers are frequently victimized by false market quotations„ Marketing charges are often-assessed for services never performed. Tliese, and other complaints from producers, are commonly heard throughout tke Province of WesttPakistah; Lack of storage and warehousing facilities - : ■ : The cotton cultivator generally sells his produce immediately ■ \ after harvest. The only produce which he Stores for any length of time is that which he keeps for his own consumption. He sfores his cotton in large piles oh the ground while awaiting'sale.- The dealer who purchase# the seed cotton then stores it in ordinary rooms either loose or in bags. Following its movement to the giti and prior tp ginning, it is again stored in huge piles unprotected from, the weather. Hence, there are several - /stages where the lint is subject to damage from the elements before it is ever ginned arid baled. ; The preSent marketing system for cotton is apparently operated on the theory that it will be ginned and forwarded to Karachi as soon as possible after harvest arid the primary need for storage facilities is at • Karachi. , . , : : Because, they have full control over the storage facilities, the "a commission houses and the exporters at Karachi are in a position to exercise control .over the market and to largely dictate the terms of ■ ' '• : ■■■ ■ i:;;'-; : : y v t :: t y . purchase and Salei The overconceritration of cottori at Karachi tends to have some adverse effects. The insurance and storage costs are higher than warranted by the services rendered; a downward pressure on the market develops when prices are weak and supplies are in excess;, and the ginner in the interior is compelled to deal "with an intermediary at ■ Karachi, whose pos session of storage facilities places him in an unjusti fiably strong position. - Lack of grading and standardization The grading of commodities: in accordance with accepted standards is an important prerequisite to an efficient marketing system. It facilitates buying and selling insofar as the buyer is more certain of what he is purchasing, and prepared to,pay on the basis of quality, while the producer stands to realize a return proportional to the quality of produce sold. . : . West Pakistanis farmers are totally unfamiliar with cotton grad ing:. In fact, no grading of cotton is done until it reaches the Karachi market. At the secondary market, quality evaluation is purely arbitrary. hack of credit facilities Ginners usually lack sufficient funds to finance the spot purchases of seed cotton. When purchasing the seed cotton from a grower, the normal practice is to withhold partial payment until the next delivery is made. Because of his already strihgent financial position, the farmer cannot tolerate unziec ess ary delays but needs payment in full upon ■delivery* This, for c es him into the hands of the middleman who can pro- ■ - ■ , ; ■ ’ v, ; / 1 vid him with this service. . ■ ' ' ; ' CHAPTER V • PRCDUCTXOH AND MAKKETIHG'OF'COVTON IN ARIZONA:/ . - A COMPARATIVE ANAEYSlS For illtistratiye pttrpdses, it .was decided to-conduct a simple, comparative analysis of the cotton production and marketing practices in the Province of West Pakistan with those in a modern, progressive country like the United States. • . The State of Arikdda was selected for the comparative Study of pr oduction techniques, it being most comparable to West Pakistan in climatic and growing conditiorts. Arizona, located in the southwest corner of the United States (Figure l5) is 'Only about one-third the size of West Pakistan in land area and one -half that in population density. The cultivated crop area, distributed throughout the hot, arid belt, is‘ 99,per.cent irrigated. ; Arizona's' economy is built around, agricultural production, manu facturing, the tourist trade, and mining. Cotton, cattle, citrus, and winter vegetables comprise the major sources of agricultural income, accounting for 77 per cent of the total. Cotton alone contributed about 35 per cent CANADA "X' Nl^- \ MlCt \[% WASHINGTON j V. MONTANA - . \N,SGONS^ V — L V. ------"isOUTH DAKOTA . ^ENNSYLVANl)^ OREGON IDAHO WYOMING r » » 7 X $ '■ °"° i- r X •■*—i V 1 r ' X i > r v 1 j i C O ...... i ' ■ i i ______V— ><23*i«§&> \ -----^KLAHOMA ^RtAf^ sA5Ar ■' S \ ^ 1 ----- A ( I \ 1 V R _____I TEXAS X MEXICO 1959. 0£ Arizona- o£ the state sitioa relative P° ghoWin-S d States Map of ^ ite Figure 15. " ; . ' . ■ ■ ■ ' •. 108 of the total cash agricultural income which amounted to $421 million. ■during 1958i - , ■ ' . ; ■' ' - '■ ' ■ . . ' . : The average per capita income for Arizona in 1957 was $1,750 (Ra. 8,3i2) as compared to $50 (R-s, .240) in Pakistan. Production Productioh Areas The cotton producing areas of Arizona can be classified into two regions--central and eastern., The central region is characterised by low elevations, high summer tem peratures, a long -growing season, and large farm units extensively mechanised. This region includes cotton growing,areas in Pima, Pinal, Maricopa, and Yuma Counties. The east ern region is higher in elevation, has a shorter growing season, smaller and less ext ens ivelym.echaniz,ed. farm units, and a lower summ er temper - ature. This region includes cotton producing areas in Graham, Green lee, and Cochise Counties (Figure 16). Pinal is the most important cotton producing county, accounting As either, R. E. , Arizona Agriculture, 1959, Arizona Agricultural Extension Service CirC. 270, Tucson, 1959. p. 1. 2 -p-. S. Income and Output, IT. S. Department of Commerce, Washington, D. C ., Not. , 1958. p» 159, Figure 16. Map showing cotton producing areas in Arizona, 1959. for about 37 per cent of the total acreage mnder cotton in Arizona for year 1958 (TaMe 111. The total area under cotton in Arizona for the year 1958 was . 387,776 acres as against 3,334,000 acres in West Pakistan. Total production of cotton for the same year was 770,000. hales for Arizona as compared to 1,132,000 bales for West Pakistan* Yields Per-acre yields in Arizona are very high as compared to West Pakistan. , The average yield for Upland cotton during the 1957-58 season was 1,086 pounds as compared to only 183 pounds in West Pakistan. ^ Varietal Distribution There are two types of cdtton grown in the state of Arizona-^ .American Upland (short staple) and American Egyptian (extra long staple)1 1 Seltzer, R. S. > op. cit. , Table 10. ^ The Budget, 1959-60, Economic Survey and Statistics, Gov't of Pakistan Publication. Appendix 5. Seltzer, R. E. , op. cit. , Table 16. ' A The Budget, op. cit. , Appendix 5. ® Pakistani bales converted into American bale (500 pounds). ° The Federal Crop & Livestock Reporting Service for Arizona, Agricultural Marketing Service, U. S. Department of Agriculture) Phoenix, August 12, 1959. i l l Table’ 11. Cotton Acreage by Counties and Total Production, Arizona, -'. ; 1958, ' ‘ ' " : ■; . 1 .. ' ■ ." . : ' * : - ‘ ' i ' , " Variety Gomtty • t ’ : A '.: :: :' %lpland . ; , . ; ; ' V ' American Egyptian. ' acreage l production 1 acreage 1 production ! acres i bales 1 acres ' bales 1 ' ■ i ! -v ■ Cochise . ' 14,130 ■ i 150 1 Graham ■ ' 7,830 »' . 9,960 f . • Greenlee ' ■1,140: : ’ Z'Z'b- ’ 1 ■' ■ 1 ' : ; ■ •: ' ' - ■: . : i i Maricopa ' 128,700 ■ : ' ' 14,550 t • Pima ' 24,640 - ' ' 1 2,850 ■ 1 Pinal ' 140,030 f . ; i 7,110 i Santa Cruz. 1 1,890 t t 20 :t ■ - ; Yuma ' 83,340 f r 360 r ■ ■■■, ■■:': ■; ; 1 ■ :.X' " , V ? '■ ■ State t ot al ' 351,000 , . 1 695,400 ' 35,000 38,600 Source: The Federal Crop and Livestock Reporting Servioe for Arizona, Agricultural Marketing Service, U, S„. Department of Agricul- . ture, June, 1959, . . t -Z ■ . ' 112 About 90 per cent of totai cotton area is devoted to the short staple varieties. Ac ala 44, which averages 1-1/16 inches in staple length, is grown throughout ttie central and western sections of the state, and Ac ala 1517, with a staple of 1-1/8 to 1^- 5/32 inches, is, grown in eastern Arizona. Pima S-l, the American-Egyptian variety, with a staple length of 1-3/8 to 1 -7 /i6 inches, is grown largely as a Specialty crop and accounted for only lO per cent of the total crop in 1958-59. Cultural Operations , Unlike West Pakistan, producers in Arizona are educated and their methods of cultivation are the most modern. Planting dates vary from, the last of March to the first of May , dependent mostly upon location and weather. • , Where most of the cotton planting'in West Pakistan is done by broadcasting, in Arizona it . is drilled in rows mechanically. Seed and Fertilization Seeding rates vary from 2Q to 25 pounds per acre as against 16 to 20 pounds in West Pakistan, * ■*" Howard, E. R. and R. C. James,. Growing Short Staple Cotton in Maricopa County, Aria. Agr. Ext. Serv.. Circ. 268, Tucson, Jan., 1959. P> 7. ' ' : ' 113 In Arizona, air planes play a major role in the application of insecticides and defoliants. , ■ "■ 114 Planting seed in Arizona is carefully propagated and distributed through an association set up exclusively for that purpose. Local ginners act as distributing agencies for this certified seed. Unlike West Pakistan, producers in Arizona make very heavy applications of fertilizer to their cotton crops. Rainfall and irrigation Because of the Scarcity of rainfall, the entire cotton acreage in Arizona is irrigated, as compared to 90 per cent in West Pakistan, Major sources of irrigation water in the state are underground Wells, artificial lakes, and the Colorado River. Land Tenure System Because of completely different economic, social, and political systems in Arizona, the land tenure system is not comparable to that of West Pakistan. The major portion of land in the major cotton producing counties of Arizona is owned and operated by private individuals. As compared to a large number of absentee landlords in West Pakistan, land in this state is generally cultivated by the owners themselves. In some cases it may be leased to other farmers or cultivated by tenants. A small portion of th^cropped land is leased from the state. 115 Irrigating cotton in Arizona. As compared to very small, uneconomic sized holdings in West Pakistan, the average irrigated farm in this state is about 320 acres, ^ Because of widespread literacy and the availability of alternative occupations , a tenant in Arizona has security which is unknown to tenants in Pakistan, Methods of Harvest Approximately one-half of the Arizona cotton crop is harvested mechanically, whereas in West Pakistan 100 per cent of the cotton is picked by hand. In Arizona, the cotton harvest generally gets under way in August, with: pickers being paid in c ask ace or ding to the number of pounds picked. In West Pakistan wages are paid in kind. " Production Credit \\ The economic position of the average agricultural producer in Arizona: is very sound as compared to his West Pakistani counterpart. Production credit is plentiful, the major sources being cotton finance companies, commercial banks, production credit associations, and pri- 'Vate' funds. ^ ' y' -dy::;:-: y .v: P, i . - , 1954 0 ensus of Agriculture (New Mexico and Arizona), U. S. Pepartmeut oi Commerce, Bureau of. Census, Wash., D. G, , 1956. p. 158 117 In Arizona cotton is harvested both by hand and mechanically. m i p m 118 Production Costs Because cotton production in Arizona is so highly mechanized, whereas in West Pakistan it is produced solely fey manual labor and bullock power, it IS difficult to make a direct comparison of production costs. The estimated per-acre cost of producing Upland cotton in Arizona for the 1957- 58 seaSoa was 80 (Table 12). In Spite of the fact that the cost of producing seed cotton in Arizona.exceeded that in West Pakistan by at least five times, the higher yields per acre and better prices obtained resulted in an ayerage net , profit of more than 13 times, that realised in West Pakistan. Marketing - Marketing and Related Practices of Growers Hauling cotton to the gin Seed cotton in Arizona is hauled to the gins in large trailers with, capacities of three to four tons, and towed by farm tractors, or trucks, hr W est Pakistan, most of the cotton crop is' transported to. gins in bullock carts, which is a very primitiye, slow, and inefficient means in comparison. Almost every ranch in Arizona has free dccess to a modern, payed, all-weather road as compared to West P a k ista n , where many of 119 Table 12. Estiznated. Cost of Producing Upland Seed Cotton: Per Acr.e> . Arizona, l958« \ i 1 / 1 /Cost-llem.-" : ; : " , ■' t P er Acre t ; Pxeb.a#ve;:st:6 o:a.i;s:: ; , -, r preparation / $ ll. 50 t ; "Seed (20 lbs.) 2.20 ' i Planting . 1. 75 ! y ■ . " Cultivation ■ 7.00 1 Hoeing and thinning : 13, 00 i Irrigation and ditch labor 8, 00 .' i' 1 Fertilizer and application .21, SO: ! Insecticide and application 16. 00 < % ? : ' " Production, credit v 4.10 i Industrial insurance and ; i social security 2. 00 i $ 87.05 Harvest and hauling ' ! , 56. 507 . f , Water "out-of-pocket" cost only ■ -p . fi4,-.25;:: .. . ; f ■ Total Cost . • # 157. 80 /■ 7 :y l / Ayerage yield 2,880 lbs. seed cotton i at li^ per pounh f f r 374.40 Less cost of production and harvesting • i -157.80 t Total return per acre ; / i . $ 216.60 dSonncej' 'Seltzexy' R. E« ^ Acrizona AgrMnltnre, 1959,. Arizona :Agr»' Ext«: ■' ' - / Serv. C ircl 270," Tucson, 1959. p> 8. -1 : ' - ; . A 120 Baled cotton is transported from the gin to a com press -warehouse on huge motor trucks. 121 ; , the roads are little more than crude trails totally impassahle mhch of ' the time other than to foot passengers. Forward s elling and spot s elling ' ' In discussing'aelling practices employed by cotton farmers in .Arizona, it is necessary to first define the type of selling commonly practiced, i. e. , "forward selling" and "spot selling". Forward selling refers to the sale of Colton for future delivery-on a futures exchange. This is carried pht through an agent, generally the cotton finance company which is financing the grower, or a broker acting in behalf of the grower. A grower will usually sell forward only enough cotton to cover produc tion costs or not more than half his estimated total crop. Spot selling Coyers all other sales of physic hi Cotton, except those for future delivery . on a futures exchange. In spot s elling, the physical product is actually • ' on hand at time of Sale and is turned dyer to the buyer following the completion of the trahsactipn. ?;■ - -1, , - . V : x ; i / . . ■ . Marketing practices in the central producing region, of Arizona . differ from those of the eastern region. Forward selling is rather com mon in the central region as compared to little or no forward;selling in r easterh Arihona.' ; • ■ . ' ■ ' : .. f ., : . ' The latest study, for which figures are available,: reveals that.; ' x, x forward selling waS confined to the central; region of Arizona and that - 27 per pent of the total crop was involved in this type sale. ^ Two factors pe.rhaps rnore than any other, account for the extensive use of this prac - ticeeih'theSe, counties: large cotton acreages per farm, requiring sub- y ■ Stantial capita.1 outlays in machinery, equipment, and production expense: make it practical to sell at least enough cotton forward to hedge produc tion costs; and cotton finance companies provide facilities for forward selling to their patrons; . i' - . Most farmers in Arizona retain ownership of their cotton through ■ the ginning p rpc es s ahd until afte r it is ciass e d. . ; ■ . ; . Time anti place of sale . ' . , ' When a grower in .Arizona wishes to sell his cotton, he can instruct his ginner to this effect, Or he can go to one or more of the yarious types of cotton buying .agents operating within the area. ■ ■ ySprne growers: custAuarily sell their cotton shortly after it is ginned, while others generally hold it for some time. An insurance and . storage charge, incorporated in the ginning fee, provides the grower . with, free coverage and stor age for a 2 0 - day period following ginning. ' - if ' Hathorn, Scott, Cotton Marketing in Arizona, .unpublished report, 1948. p. A.": ; , f :': 'U:-/ , ' Type of agencies through which growers market cotton There are four types of agencies available to growers for selling ; and"rnaifkCting■ their cotton. Included are cotton finance companies, local independent cotton buyers, cotton merchants , and cooperative marketing organizations. Ginners do hot actually purchase'cotton'sbut merely act as agents in negotiating a sale or purchase. When a grower authorizes the gihner to •sell his cotton, the ginner submits an itemized list to all .buyers in :the market for bids„ The grower is quoted the highest bid and has the option of either accepting or rejecting it. If he accepts, the ginner •merely invoices the cottoh to the high bidder. Theoretically, this system of marketing through the ginner is themost competitive, and each lot should command a price equal to its full market value. - Vy.. ; ■ . • ■•' f Knowledge of m arket conditions '■':yv In general, Arizona cotton producers are very well-informed;' concerning current market conditions,having available and making us e of One or more of the following sources of market information : posted market quotations at gins , radio broadcasts, newspapers, television, and government mimeographed price reports. • : . f 1 . Mformation relative to qaality v: ...... ■ ' ;— ■ Under the Smith-Doxey Act of 1937, a cotton producer in. Arizona has available a free governirtent-operated classing service and market news disseminator, , . ' ' immediately after a bale is ginned, it is weighed, assigned a number, sampled by :Slashing each side of the bale and removing three to four ounces of lint from each, cut, and moved to a bale yard.near the gin, ; The Sanaple is carefully wrapped with an identification tag and sent ' to the United States Government Classing Office in Phoenix; for free grading andn card is returned to the grower in care of his gih, indicat- y ing the grade and staple length of the cotton.comprising the bale. Prac tically all of the cotton produced in Arizona is graded by the Governrnent Classing:Office, • ^ , .' . ; : ' " 'G- y : ^ y : _ ' : . Disposition of cottonseed p 1 y.; '::ty: : ..t V:d::; ; The most common way of disposing of cottonseed in. Arizona is by sale to the ginner. All "financed1* growers are required to sign y . .agreements to the effect that they will sell all of their seed to the com panies financing them, "Free" growers generally dispose of their seed inthe Same manner.y y ' ■ y.: ; ;v _ , This Seed is not purchased for resale to growers for planting,, bh Toi live stock feed, but to supply thehuge oil-crushing mills .which is y; one of the main businesses of most of the. lar ge cotton finance companies. 125 One of the many Federal classing offices - -a free service to pro ducers under the Smith-Doxey Act. !f here are approximately 150 gin plants, in Arizona in comparison to 446 in West Pakistan. Like West Pakistan, most of tile Arizona cotton is grown within a 10-12 mile radius of the gins . V * A majority (131): of the ginsinArizona are of the saw-type and are elaborately equipped w automatic feederdriers^ overhead cleaners;^ burr 3riacliines^ after;c1 eauers, green boll traps5 magnets, and fire preventive xleivices of varibus descriptions^ In tbe Proyince of West Pakistan the majority are: M the most primitive, single-roller Hnlike many cotton gin operators of West Pakistan, Arizona gin owners engage in various commercial activities. Much of the Arizona cotton industry is concentrated in the hands of a few large concerns that: engage in various business ventures such aS operating gins, cotton-, seed crushing mills, compresses, farms, lint merchandising, and varibns • other activitieso Currently, three cotton finance companies own approx- imately:Onc-haif of the total: number of gins in the state. Each of these firms owns: a cottonseed crushing mili, and the largest of the three owns its own: oonapress. ■ ■Vi ■. i; '■ V '. ^ . •; . : .Functions performed at Arizona gins . . . if k Functions performed at AriZona gins directly associated with ginhing are cotton ginning, labeling of the bales, sampling and buying, 127 ■ < . ■ ■ ; V:v": :• - : . ■ 128 storing, and. selling cottonseed. Those functions not directly related to ginning are the distribution of planting seed, financing production, fur nishing market information, and buying and selling of cotton. 129 At the compress the cotton bale is recom pressed to a higher density for shipping long distances. An integrated oper ation consisting of a cotton gin and cottonseed oil mill. The bale yard in the foreground is silhou etted against a huge pile of cottonseed awaiting to be crushed. C H A P T E R VI SUMMARY and conclusions Pakistan, born as the result of a redistribution of Indid along the lines of economic., racial, religious, and linguistic affinities only 12 years ago, has been harried by a. myriad of basic problems. From the beginning, Pakistan has been handicapped by a geo graphical division into, halves which af e s eparated by more than 1,000 miles at the nearest points by a nation totally unsympathetic to its movement, development, and progress. ' ■■ - . Due to its youthfulness and the chaos' accompanying its birth, Pakistan has been aimost wholly without an economic basis on which to build and grow as a nation. . . ■ Low production rates, resulting from a lack of adoption of tech nolb gies , floods, a restricted water supply, and the dependence upon the production of exportable commodities to yield direly needed foreign exchange earnings, have resulted in chronic food shortages in a country burdened with overpopulation. - t :v.:' 131 V And, finally, any real progress in the way of national economic development has been blocked by the lack of a universal language, an extremely low literacy rate, and a governmental body marked with instability and corruption. ": , The average yield per acre for cotton, the principal cash crop ofthe western Province, is very poor when compared to yields obtained in the irrigafed sections of the United States, In Arizona,, for example, an area very similar in many respects to the main cotton growing sections of .West Pakistan, the average yield whs six times as great for the l957-58AeaSbm r ' ' i \ \ : : . S'- ." S'./r'' Met profits, too, in Arizona were more than 13 times those in West Pakistan for the same season in spite of the fact that Arizona pro duction costs were five times higher. Specific problems stifling progress in the production and market ing of this important crop in West Pakistan are: 1, . Competition with other cash crops . 2. Competition with synthetics • 3, Low per-acre yields > ; ' : ; f v , ', , , s . ' ' ' . ; . ; . . , 4, Low soil fertility ■ • 5, Inferior quality of seed available 6. He&vy tplls from ins efts and dis eas es ; ' VA,: : Floods;- ; : : k 8. S alinity and wate g . 9. Inadequate land tenure system 10. Inadequate- ^ouree of production credit ’ 11. Inadequate transportation facilities 12. Lack of rnarket inforrnation 13. Inferior quality of the produce available for sale 14. Poor .harvesting practic es ' 15. Careiess handling and malpractices at gin 16. . Multiplicity of intermediaries V. .%/ ' ?-'/ K.:'V Fraudulent prapticeB in the market * '' ' r '* ^ 18. , Lack of Storage and kyh r eh pus in g facilities t , Lack cf grading and standardisation 20. Lack of credit facilitiese. CHAPTER VII REC OMMENDATIDN3 Although, burdened with a myriad of problems5, there appears to be a bright ray of hope on P ak istan i horizom :Continual political unrest^ undoubtedly the greatest stumbling block to progress since Partition, appears now to have been resolved under the present regimeV Significant accomplishments which have already been consurnmated under the direction of President Ayub Khan, include a complete new land reform system and the Settlement of a long-standing feud with India over the control of vital irrigation watersQ A strong central government, sincerely interested in the welfare of Pakistan as a nation, and supported by technical assistance through the Internationar Cooperation Administration program and other forms of foreign aid now being provided, offers the most promising future for all segments of the economy concerned that this country has yet known<, West Pakistan should strive to attain cotton production and marketing efficiencies commensurate with those enjoyed in the United States. This is by no means an unrealistic, Ton g - range objective. The 134 achievement of such production and marketing efficiencies and the resultant rise in the econorriic and social'standards, of the masses .which ' , . : . . . ■ ; ■ ^ - ■. . ' ' . f will ensue,;, of necessity will be very slow and will result only from the coordination of a great many significant reforms, . To promote this objective, the movement of labor from the farm and its substitution with mechanization'should be encouraged. Such a , reform is recommended only at the rate at which the displaced labor can be absorbed in more productive occupations, This calls for a rapid industrialization of the country. ' , / 4 Possibilities for increased industrialization include, among others, additional cotton spinning and weaving mills, and the manufacture of fhrm machinery, . - - To encourage farm, mechanization, it is suggested that modern implements be made available to farmers at rates subsidized by the government. ' ' ' - . . /' ’ . : The consolidation Of uneconomically-sized units should be encouraged, and new lands with good production potential should be brought under cultivation. 1 ^ To encourage the development of new lands by qualified personnel a homesteading act should be considered whereby agricultural graduates could acquire adequate-sized holdings either free of charge or at very nominal rates. ; f \ '■ ,, ,■ /' ' .. . v. ■; Basic to a sound development of any country’s economy is a ' :;: literate, informed p-opula.ce... The educational system of Pakistan is archaic and only the favored have an opportunity tp. acquire a well- rounded education. In fact, illiteracy is one of the fundamental factors preventing the fluidity of farm labor. Y Educating the farmer in the use of modern machinery and improved farming techniques can best be accomplished:thypugh a well- • coordinated extension.program. Such a program needs to be organized and administered by qualified personnel interested in this movement. To attract Such people will require substantially higher stipends than are now being offered. „ ■- . _ • i : i . Specific problera areas and suggestions for coping with each follow: ■ ■ - - ;.v' . Y-\ ■ . ' . 1 - "V 1. Soil fertility- -farmers should be encouraged touse complete plant foods based on predetermined Soil requirements. Such fertilizers Should be made available by the government at subsidized rates. . 2. Planting seed program - -A more clos ely super vis ed system of propagating planting,Seed, the encouragement of the sole use of such • seed in planting and a Source of Supply more conveniently available to each and e ve ry farm er a re has ic nec es s it i e s to any1 program wher e ■ . greater Cotton yields are desired. A seed distributing agency in prac- . tic allye very village throughout the cotton-growing a red could be justified. 3. Pest and disease control--Extension workers could provide invaluable assistance to'farmers in advising them as to the identity and ■ methods of control of the numer ous pe sts and die eases which plague / cotton crops in Pakistan. , : ' 4„ Flood control--Huge dams should be constructed in the sub- mountain tracts to control run-off arid also to provide an excellent : source of badly needed irrigation water. Such a system is one of the principal sources of Supply of irrigation water in Arizona, _ 5,. Soil alkalinity and waterlogging--An extensive campaign should be launched to control the devastation of productive lands from alkalinity and waterlogging. 6. Agricultural credit facilities--Cooperative credit societies based on the principal of the Production Credit Association in the United States should be encouraged. • 7. Marketing cooperatives - -The adoption of nonprofit, marketing cooperatives would go a lorig way in eliminating the exploitation of the farmer. ' '■ . 8. Marketing charges--Marketing charges should be standard ized, based on an impartial determination of fair and just rates, , 9, Weights and measures inspection--Scales should he inspected and certified by a government inspector, periodically. 10, Selection of market committees --M embers of m arket com mittees should be selected.strictly on a m erit basis. 1 L,: Market, regulation -e>41i.markets throughout ‘West Pakistan should be controlled under the Agricultural Market Produce Act. 12. Government class ing service- - The government should pro vide a free 'classing service to all important cotton markets of the Province. 15. Highway improvement program--A long-range road program should be set up, aimed at connecting the rural areas and markets. This would facilitate transportation by more modern means than are now being : ■ v : ' used. • -- : ■ ' X: ' _ ' , • . . ' . ' ' ' . : ~ 14. Cooperative banking - - It is suggested that there be a cooper- atiye bank located in each cotton market for the purpoSe of. advancing credit to ginners and other marketing agents. This source of funds would, in turn, be finane ed by the State Bank of Pakistan. . .v /15. Additional cotton "futures " markets - -To provide a continuous market and to facilitate trading on a more uniform, stable basis, .addi tional cotton "futures1' markets should be provided at important cotton marketing centers such as Multan, Rahim Yhr Khan,' and Hyderabad. 16. Federal market nevs>: service--A federally regulated 'market news system worild provide for the dissemination of more accurate and uniform market information. An integral part of this program would provide for the establishment of additional radio sets in each community and the Use of motorcycleS to disseminate daily market reports where warranted. . 138 17. Sale o£ gitmiiig factori^ ginning faictories should be offered, for sale by the government rather than allotted to individuals on the basis of need as has been the |>ra,etiGe theretofor. , . 18. • Additional warehousing and storage - ^ The re is a definite need for. additional ■warehousing and storage facilities both at the principal interior rail eenters where the bulk of the cotton, is ginned and at Karachi. Warehousing in the interior would remove the pressure from. Karachi by evening out the flow of cotton from the interior. Also quality, in general, should show a marked improvement from the installation of more and better storage facilities. ; , • 19. Control of malpractices- -Severe penalties should he adopted and meted otit to anyone found guilty of m alpractices in the marketing of .cotton. * -r BIBLIOGRAPHY Andrus, J, R. and A, F» .Muhammad, The Economy of Pakistan, Stan- ford University Press, l958« Akthar, S. M. , Economics of Pakistan, Publishers United Luhore, ' ; \ipukistany i :'-: 'i:;: ;- ' • ..-a a /V i ■ ■ . ; / ; , Problems and P'rosp.ects of our Economy, Publishers United Lahore, Pakistan, 1955. ' t ■ ' Annual Report of the Dephrtment of Agriculture Punjab, 1940, (unpub lished), • Brown, H. B„ , Cotton, Me Graw - Hill Book Company, Inc, , Third Edition, •... V'1958a : 'Vf A A „ '-W"' ' . Bell, J„ O. , Agricultural Crisis in Pakistan, U. S. information, Karachi ;; a V;' Pakistan, Feb." 11:, 1957V: 'a " .v ' • ;; Cotton Wgrld Statistics,A-^i-^A- International -At-' Cotton Advisory Committee, Quar terly Bulletin, W ash. , D, C. , April, 1959. A : ' ' % ' ' ...y-' ' ■; International Cotton Ad vis ory Committee, Quar - terly Bulletin, Wash, , D. C. , July, 1959. , International Cottoii Advisory Committee, Quar , terly Bulletin, Wash. , D. C, , January, 1958. Cotton Situation, Gov't of Pakistan Publication, 1955. Census of Pakistan, 1955, Govt of Pakistan Publication, 1955. Crop Wealth of Pakistan, Gov't of Pakistan Publication, 1949. Census of Agriculture (New Mexico and Arizona), 1954, U, Sa Dept, of Commerce, Bureau of Census, W ash., 0 , C ., 1956. 139 140 Buiffiy R, P, Cotton in Pakistan and Indian Union, National Cotton Council, Memphis, Tennessee, 1949. Faroqui, H. M, , Agricultural Marketing in Pakistan, Amin Book Company Karachi, Pakistan, 1958. Gurmani, Ml. A» , Growing More;Food in Pakistan, U. S„ Information, ;;'' 11, 19 5 # Hathorn, Scott, Cotton Marketing in Arizona, unpublished report, 1948. Howard, E. R. and R. C. James, Growing Short Staple Cotton in Mari- ; , copa County, Ariz. Agr. Ext. Serv. Circ. .268, Tucson, Jan. , 1959. ' • v nni.' : ;o/,: :v,. ■ •: : ;; ; . karachi Cotton Annual No. 20, Karachi Cotton Association, 1956-57. King, W. C. , Development in the Cotton Industry of Pakistan Sinee 1949, U. S„ Department of Agriculture, Wash. , D. C. •, April 8, 1955. Dahab Singh, S. S. , Cost of Productipn of Crops, Publicatidn No. 83, f Board of Ecbnomic Inquiry Punjab, Lahore, Pakistan, 193.3. Marketing and Finance qf Coftoh in Pakistan, State Bank of Pakistan, A V';' .A954.\\; :v'v;n y f ■ \ ;• V ' ' A ■■■ ' ' Market and Prices, Gov't of Pakistan Publication, Nov. , Dec., Jan. , Feb. March, 1956 - 57. . . ' . V - -. Pakistan First 5- Year Plan (1955-60), Gov't of Pakistan Publication. ■ Pakistan Commerce' Industry and Agriculture, British Industrial Fair, . W 9 . v.: :: ;.. r ■ ■ . ■ ;; / Robert, T. J. , "Does Excessive Capacity Exist in the.Pakistan Ginning Industry,11 Pakistan Cotton: Bulletin, Pakistan Central Cotton Committee, 1954’4 • Statistical Tear Book of Pakistan, 1955, Gov’t of Pakistan: Publication, ^"-w.VVV t 1955^ .. ; .XT 1 - " Season anh CropBaportsf Gov't of Punjab Publications, 1948-55. Selti£er, R. E«, Arizona Agriculture, 19.59, Ariz> Agr„ Ext. Serv. Eire. 270, Tucson, 1959. , The Pakistan Cotton Bulletin, Pakistan Central Cotton Committee, 1955. The Budget .1959-60, Economic Survey and Statistics, Gov't of Pakistan Publication. v';; 'v''" The Federal Crop,and Livestock Reporting Service for Arizona, Agri- cultural Marketing Service, II. S. Dept., of Agriculture, Phoenix v, : . A ug. «,.1958,: ; :: | ; ; : , AgriculturalServiee, U.. S>. Dept. % '' . '' ' of. Agriculture, Phoenix, June, 1959. ’ ' v The Pakistan Cottons, 1957 Annual Number, Pakistan Central Cotton Committee. Ten ■Years.of Pakistan (1947-57), Gov't of Pakistan Publication. The Cotton Trade Journal,. The Cotton Trade Journal, Inc. , Memphis, > Tenn., 1959. ' ' U. S. Income and Output) U. S. Department of Commerce, Wash. , D. C. , ' Nov.', 1958. .J ' N . .' . ; v ; Vasudeve, R. S ., Studies on the -Root-Rot Disease of Cotton in Punjab, : 1957, , ' " ; " ' ; ' APPENDIX 142 ‘ ■ : y y; 143 Append TaMe, 1« Land Utilization in Pakistan by Acreage, 1957,, : ;:y.y:' - ! ■ , t „• •, ' y ■ A , : Land tlse .: '■ Acres j Percentage ' ' - y' i ■' millions 1 per cent ' . , J . ' . ■ " . Under cultivation • V-,V V , 60,7 ' 26 ' t t Forests ■ :t : 6, 1 ' : . 3 ■ . t .. . ■ .Cultivable waste • , , .t 27,0 12 ■ t i Unayaiiable for cultivation . 57. 4 , ' 24 ^ y l , • ; i Unclassified' . 82. 3 y : . 25 y . ---1:------i • ’ - •' ' . ' ; ' '/'y a ®dtai' . ; . ■ : -i 7 233. 5 , : ipo. ■. ! • ■ ' ■■■ c y ■ Sonrce: Pakistan First 5-Year Plan (1955-*60), Gov't of Pakistan Publication, p„ 215, ; * 144 Appendix; Table 2* Acreage Devoted to Cotton Production by 5-Year . Averages, West PaM stan? 19djQ-1959, ^ ' a ; , ; ■ ■ • ' . :: : Tears. ' V ■ ■ - , : • nV.-. .Ayerage Acreage a • ■ ■ . ' i if ; V •- tlioHs andB l90d-0lto 1904-5 . • . ■ ' ■ i . 767 1905-6 to 1909-10 :■ , ; ' t 883 I9IO-II to 1914-15 . • ' . , ,1' 1,290 1915-16 to 1919-2 0 ; a :; 1,261 ; ; a . i l : / ■ 1920-21 to 1924^25 -■ . ■' ' ' ;■ ; t; ■ : -1,542 ' ' ■ 1925-26 to. I.929-3.O ; .%,055.. ' . A 111 A;' v-:." '. ■ •' ■ : . ' i • • ■ ' 1930-31 to 1934-35 ; : A 2-, 132 . , . 1 A :l936-36 to 1939-40 ; ;v ' A i: A ; 3,418 1940-41 to 1944-45 ■ ■ i : 3,325 1945-46 to 1949- 50 A 1 2,832 1930-51 to 1954-55 ■ y i .... 3,152 1955-56 to 1958-59 • V 1 3,4852 Prior to ^ 15, 1947 (Partition) tbia area was part of India, Pour-year average„ Source; Calculated from Pakistan Cotton Bulletin, Vol, 1, No, 2, Pakis tan Central Cotton Committee and The Budget, Gov't of Pakistan Publication, 1959-60, Economic Survey and Statistics, Statisti cal Appendix No, 5, . 145 Appendix Table 3* Cotton Aereage by Divisions, West Pakistan, 5-Year Average# i:'9.50-54. i Division Acres r P er Gent ;V:;V:/-;:.;;:: , thousands: t: ; 1 Multan : / 1,165' : ' ib. ' 36. 42 1 - Hyderabad ■ - r 22.32 ' ■b- . 714': r Bhawalpur . 574 i 11.95 Y V v v: , / : y ; ,; ' i Rawalpindi I' ‘ ■ 265 r 8,28 r Lahore . ■ : ■ , ' 260, . i 8.18 ' ’ ^ : - '■ r" • t Khairpur ; 202 T : 6.31 t ■f Others ■ . ■ 18 6.59 ' ' - ' . " ' T Total . 3,198 1 100.00 :>-c 1 Source: Calculated from Statistical Year Book of Pakistan# Gov1! of Pakistati Publication* 1955«,. ; " - Appendix Table 4, Proportional Distribution-of Average Cotton. Produc . tion Among the Six Major Producing Countries of the Free Wmrld, 1952-59. -' . ' . . V": • Production • Country ■' - ."y.Bales 1; . I . P er Cent thqnsandis ' '* ; % • ,:v : 1 . '' ! ' ' " :. tl,;.s. A.. \v;.Vy::> : 1 i%&23 v ■; ! 460 3 T " . . . 1 • India ! . .3,997 f ‘ 13.6 '■ [’i:: ' Mexico ' . :: ■ /f. ' T ,813 • 1 , 6.2 ' . ! ‘' ' r ' E,gypt . :: ? 1,725 i ' ■ */ 5»: 8 : : ]X. 1 ' - - ’ Brazil'. r, : 1,464 i ' : 5.0 1 r Pakistan - X ■ 1,353 . , ? ' 4. 7 \ ■ • / - : ; ■ ; ■; .v :,i;; j . t ; ■ i Subtotal. 2% 975 81. 6 ' ! ■ ■. " ■ ’ " : ■" • ' : f t . ./ Others ■ : :-j , : 5,398 \ ■ f • 18.4 : i _ : • i ■' 1 - i Free World Production |tdtalj 1 ■ t' r: %9,.373i 100.00 One bale equal to 500 lbs. gross height. Source: Calculated from Cotton World Statistics, Bulletin.of the ' International Cotton Advisory Committee, April, 1959. p, 17. 147 Appendix Table 5;„ Volume of Cotton Exported by the,Major Exporting Countries of the. Free World, 5-Year Average, . \ / 1954-5K - . ■ . V- . 7 ' ' CAT'; I Country V ' ' i :; Bales;1 T Per Cent thoddaznds f ; \;X- i . F ree World '■rp- 12,158 . ! , i : U.' B„ : A. ■" : ' ' ; 4,547 r , 37.39 i f i Mexico V: '1,385.:'; ’ 11. 39 ! t Egypt V :1 -.1,241;: ! 10.21 f : r Brazil ' ’*■ l ‘- 770 i, 6. 33 i - Pakistan ; I ’ 633 I 5.21 1 1 Sudan - 1 400 ■ i 3. 29 i ; A India , ' c > ; 265 i 2. 18 f I Subtotal t 76. 00 1 Others ' " • i f M* oo I ■ Total / y -:; , r loo,oo :r 1 One bale equal to 500 lbs, gross weight. Source: Calculated from Cotton World Statistics, Quarterly Bulletin of the.International Cotton Advisory Committee, July 1959. p. 19. Appendix Table 6. Volume of Cotton Exported Annually, Karachi,’ West - ; .Pakistan,: 1949-50 to 1957^58. ' , . : ' Year \ ; ■ / .v ; ' , . ‘ Bales^ ? tb ousands ■ I : ■■ l9 4 9 -‘B0- ■ ^ : : r ;; 9' ■ 864 ' . .71.1 ’ ■ i;a:95Q '-5ie;;. V :ry^i.:7v;.:: ^ ViA .m 'i 1;.,;:;: , r.; eA 1,043 : e ; 'y l95l^.5Z ' .7 7.17- ■ ■ . 906 ; '7f7 , ' ■ ■ , A952-53i/ 7 '. ■■■■; : 1 ,275 ; , J ■ ■ 1953-54 17:'^V 7'-\ I • ■ 898 :i: t 1954-55 - '7 ; ,':7 ' 7 ^ ! : 650 1 r ‘ 1955-56 ' 7 ■77l;7y- '7 . . ■ ■ ■ , . 726 .77 ,i ■ _ ■' 7 " . i9.56-57 : 7 ' ■ ' '7.,: ;>/7,.7\ v77vvVV-7 emit: ■ 508 >'• - t ■’ ... ' : 7 i9 S 7 r 5 8 77,;:; :7 ,7 "'.f/'• 77 •4:: 385 /7 :i7 V a x ; , ' 'A; One' bale equal to -500 lbs6 gross weiglit. Source ; Cotton World Statistics , Quarterly Bulletin of the International . Cotton Advisory Committee, January 1958, p„ 17; July 1959, $>. 19. ' i'49 Appendix Table 7. Distribution:of Ginning Factories by Type, Number, and Location, West Pakistan, 1957. T Type of Gin ■ ; i , Number of < . . . .D istrict 'At Factories ' Single %: !• Double ■1 : 'Equipped with Saw ■1 Roller ^ f Roller , i ■ >,■ ' ARressea l i i- ■ ! ' I Lyallpur i 69 '' 1,536 ■ f 34 ' 1 57 : i :' : 36 ' .. Multan t , 65 ''1,654 1. 277 I 142 V1; 1 47 Jhang ?. 19 f 291 10 J 5 I 8 Mont gom er y ' 33 '1,127 i 27 ! 58 i 24 i. T tr ■ Lahore 22 ' 577 55. i 4 V. 16 Sargodha . i 54 ' 329 : ;.f 63 ’ I . 10 . r 18 Gujrat r 24 ' 187 * T : 65:,:. 1 4 ’■ f 6 She ikhup ura i ' 508 . t. r ::'7-: . ■ : i . .14 ■ c . Bahawalpur- ■ t ’ A ; i 2: C:.:,;N. A..:':, Rahim YaK i * L i * i ■ . t Kbah' ■i" 50 1 1,095 •i 140 . ' 35 1 A ' N„ A„ ; . Hyderabad: ' : 27 . '1 8 2 '' r 497 I 38 t . N. A. - Nawah shah i 28 ' 1,113 1 129 1 20 ! ■ n . a . Thar parkar i " 27 ' 335 i 498 t 51 . f . . , N.A„ ■ t': i • i , ' f I j, ? ■ ■ r I . » Source: Karachi Cotton Annual Not 20, Publication of the Karachi Cotton, ; Association, 1956-57, Section III, p0 2„ ■ Appendix Table 8„ Cortiparatiye Ayerage Monthly Prices of Variety 289P Seed Cotton in Khanewal and Montgomery ' -y '' , ' ■ Marpeta, 'West Pakistan:, 1956, . ' 1 y M • ’ / ir - ■ ' ■ ■ i; . 9 :: Markets ■ Month . i Khanewal . . 1 Montgomery * j rupees 1 / 1 dollars " 1 _ rime e s 1 1 dollars . 1 . ' v /. - ' ■ i , Price per Pound ‘ ■ r' 1 j 1 ; i i October ; 0, 345 .1 . 0, 072 . 0,340 V 0. 071 T 1 T T 1 ; f ; ; 1 Noyember 0. 371 v 0, 078 .. '■ f 0,3=46 ' 0.072 ; 1 - 1 i t ' : . . December t 0,431 , r 0, 090 / ■ f. 0.417 . r 0.087 ' - » 1 1 ■ i ,, 1 i Jantt^ry - ^ ■. 0. S49. 0, 073 ■ 0.340 '.. 0,031 V ■ ; '-T--; t .'%X ■ • : February . ! ' 0, # 0 0, 075 •: 0, 347 ■ ' 0.073 / V • M. V M-'fv ■■ V: i ! ; ■ ' ' ' 1 t 1 . ' " ' . , / ' ■ ■ . . ' . 4. 75 rupees equal $1. 00 (based on official exchange rate as of September 14, 1959). ■ Source• Secretary Market Committee Khanewal, letter no, 342, 9/7/58 Market and Prices, Gov't of Pakistan. Publication, Nov,, Dec, , Jan,, Peb. , and March issues, 1956-57, Appendix Table 9* Monthly Average Spot Price of Cotton Lints by Variety, per Pound, Karachi, West Pakistan, 1,56-57. ■ , , .. .. ^ p . .- ,v:p , " ; ' . • ; • ' ' ,• Variety; ' ' ; . January % - - ' .i.iis:..:,;; 0. 2S43- . ' / . ' p i # , V ; 0 ,2 3 7 8 1 .1 1 7 0 .2 3 5 1 1. 178 . 0 .2 4 8 0 : February 1.061:1 0.2234 I.0i85 ; 0.2284 1, 0 92 0 . 2300 . ; 1 .1 4 5 0 ,2 4 1 0 0 .1 8 9 6 0 .2 2 0 6 1. 044 0 .2 2 0 2 : .1.104 ' 0 ,2 3 2 4 March . o. 90.1:; 1 .0 4 8 : v v •'; ' v.-'.April;.'.:v : i4d3S 'i: ; 0*2174: ' V 1. 058 0 .2 2 2 7 1.0.66 . Oi 2244' ,; ;-l,. i0 2 : : 0. 2320 : -0 .9 7 0 : 0 ,2 0 1 2 : . 1.001- 0 .2 1 0 7 1,0.14 • 0i 2124 V-1.0:50 0.2210 . : ';,->• V/X'-- :: 0, 2000 0. 9.60 0 .2 0 2 1 1 .0 0 7 0 ,2 1 2 0 ; June . ■Q,9bS:::;i p o . 1903 I .0 ,9 4 7 v - ■ v" . . - ' ; July M 0J9lSv;-,;: 0 ,1 9 2 0 ' 0. 953 A 2 0 0 6 , 0.980 0.2063 1, 025 ;0 v 2 l5 7 ' . . V ' ' ’ • • August - - . 0.9l0 I ' 0.1:957 '' 0 .'9 7 7 , : 0. 2056 : 1.020 '0,2147 . I , 060 0 ,2 2 3 1 Average of both saw-ginned and. roller- ginn e dc ott on lint, ... 2 4.75 rupees equal $1. 00 (based on official exchange rate .as of September 14, 1959). Source: Karachi Cotton Annual No. 20, Karachi Cotton Association, 195^57, Section II, pi;3:7. - •' '• A : :: - C: ' ' : 152 Appendix Table 10, Montbly Average Spot Price for Variety 289F by 1 M Karacbi} Wesi Pakistan, 1956-57= ! ! ■ Method of Ginning Month i , Sayr-• ginned f roller-ginned f rupees 1 t dollars ‘ rupees! .r:. .dollars . / Price per Pound - / ; . ' ■ . - September ' i ■ 1.049 I ' 0. 2208 ' 1.000 , 1 0. 2105 October ■ !; 1.092 1 0. 2300 J 1.025 • f 0. 2157 November r 1. 141 i 0 o.2 40.2 ' 1.065 0.2242 December r K2M L 0.2661 i 1.165 - t 0.2452 • .J&nuary i \ 1.280 ■ t:' 0.2695 1 : 4 1. 156 1 0.2433 February ; ■ v-. '11267//' y 0.2667 j 1.105 ' I , 0.2326 March ' ■ t 11207 V 0.2541 *•1.069 . ■ ! 0.2250 April : ! K202 i 0.2530 ' 1.069 f 0.2250 May ;! 1.126 ■ 1 ' 0.2370 ' 1. 025 r 0.2157 June ? 1.054 I. 0.2218 ; ' 1. 000 i 0.2105 July 1 1.074 f 0.;2261 • ' 1.000 i 0. 2105 : August ' ' . J ' V.i,;i2i:v:;';: 1 0,2360 ■. : ' 1. 039 ' • ! 0. 2187 ■. t ;■ 1 ‘ t ", . ‘ ' I 4* 75 rupees equal $10 00 (based on official exchange rate as of September i4» 195.9). * ■ v, Source: Calculated from Karachi Cotton Annual No, .20, Karachi Cotton Association, 1956-57, Section II, p. 37. :