There is clearly the need for investigation into association between changes in prices and changes in area under cotton crop for testing of dynamic models of supply function. Cotton is considered to be the most profitable crop which increases as the size of the farm increases. It is a common knowledge that net income depends upon three factors i.e., the yield, the per acre cultivation expenditure and the price of the commodity. In any area changes in yield level can be expected to be comparatively of very small magnitude in relation to the wide fluctuations in the prices. In any case it will not be very wrong to expect that price is one of the most important variables affecting relative profitability position of farmers.

KEYWORDS: Cotton, cotton crop, farmers, prices, yield