Historically, cotton production in Azerbaijan has been crucial to the national economy, accounting for approximately 25% of agricultural revenue. It occurs mainly in the area west of the Caspian Sea.[1] Historical records supported by archaeological excavations have established cotton growing in Azerbaijan to the 5th and 6th centuries AD.[2] During the Soviet era, it was termed as the nation's "white gold".[3] Since the fall of the Soviet Union and independence, cotton has significantly declined in output, given that oil and grains are more profitable for Azeri farmers.[4]
Cotton production has become expensive in the country, as is evidenced from the fact that the operating expenses for its production in Azerbaijan are now about three times that in the United States; said to be US$300 per ha in Azerbaijan. The main reason for this high cost of production is attributed to the low yield of 1.5 tonnes/ha, a legacy from the Soviet Union. Modernization needs to be implemented to achieve yield levels of 3 tonnes/ha.[5]