Full Text Article. Also available at: http://www.fao.org/3/aq553e/aq553e.pdfMAFAP analysis shows that producers of raw cotton received prices that were lower than what they would have received without policy interventions and with better functioning value chains. These low prices were associated with taxes and levies in the cotton market. Moreover, cotton farmers would get better prices if the technical efficiency of ginners was improved. The reasons why only a very small percentage of cotton lint is spun domestically, and levels of additional processing remain persistently low, should be explored further.