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The study on the economic viability of cotton cultivation in Magu district carried out in Magu district. The study will be significantly important to different stakeholders like the cotton farmers, the government, investors and researchers in making economic decisions. The study presented into five chapters the introduction, literature review, research methodology, presentation of the research findings, data analysis and discussion, and summary, conclusion and recommendations. The objectives of the study includes study and analyze cotton production per hectare in Magu District, To study and analyze the cotton production costs in Magu district, To assess cotton production revenue in Magu District, and To find out Challenges facing cotton growers in Magu district. The data on study variables like costs, price, area under cotton, yield in kg, and outputs were gathered from significant respondent‟s number of the population. Questionnaires were distributed to 120 cotton farmers‟ respondents, 4 district agricultural employees, 2 cotton board employees and 4 employees representing cotton buyers from the union cooperatives institutions. The obtained data were processed and analyzed using percentages, ratios, trends and break even points for establishing whether cotton production is economic viable. The conclusion on the study were made objective wise. And that cotton production in Magu district face deep rooted challenges which includes cotton price volatility, buying agent cheating, lack of education among farmers, lack of reliable source of cotton seeds, Nonuse of modern agricultural implements due to lack of centralized facilities, and Lack of collateral for loan from financial institutions. The cotton production in Magu district is not economic viable. Cotton production involves both fixed and variable costs, of the fixed cost has constituted large share. |
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