Abstract:
Cotton, the source of livelihood for millions of poor rural households and contributing
significantly to export revenues, is a vital commodity for the economic and social development
of Mali. Decline in international prices and weak institutional arrangements are two recent
developments threatening the sustainability of the Malian cotton sector. This study quantitatively
analyzes cotton growers’ supply responsiveness to both price and non-price variables using an
augmented supply model. The relationship between farmers’ supply responses and institutional
factors is estimated using a balanced panel dataset for six cotton regions over the period 1998-
- Results from the fixed effect estimator suggest that delays in payment to producers and
bad credit recovery negatively impact acreage decisions and production levels. The farmer
boycott movement also explains a large part of the decline in hectares of cotton and production
during the crop year 2000/2001. Moreover, a decline in farm-gate cotton prices significantly
reduces per acre production but not acreage of cotton planted.
