Abstract:Cotton, the source of livelihood for millions of poor rural households and contributingsignificantly to export revenues, is a vital commodity for the economic and social developmentof Mali. Decline in international prices and weak institutional arrangements are two recentdevelopments threatening the sustainability of the Malian cotton sector. This study quantitativelyanalyzes cotton growers’ supply responsiveness to both price and non-price variables using anaugmented supply model. The relationship between farmers’ supply responses and institutionalfactors 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 andbad credit recovery negatively impact acreage decisions and production levels.

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