World Bank Document

increase, especially of cotton where yields have stagnated (cf.  Figure 1).  There is significant 

untapped potential for productivity gains and sustainable intensification of cotton production in the 

most suitable agro-ecological areas, while encouraging diversification in less favorable areas. This 

could lead to a redistribution of arable and irrigated land to other high value and job intensive crop 

and livestock production. Partial liberalization of wheat production and marketing led to a dramatic 

increase in yields, while cotton yields have stagnated over the past decade (cf. Graph2). Despite recent 

equipment modernization, most ginneries are still using outdated, even obsolete equipment leading to 

low outturns averaging 33 percent, far below the 38-39 percent industry standard. Addressing 

structural inefficiencies in cotton production, processing, and marketing will establish the right market 

incentives to help farmers close this double productivity gap.