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. Historical records supported by archaeological excavations have established cotton growing in Azerbaijan to the 5th and 6th centuries AD. During the Soviet era, it was termed as the nation's "white gold". 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. 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 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. History Early history Cotton has an ancient historical record as evidenced by archaeological excavations in Mingachevir where burned cotton skein and cotton seeds were unearthed dating to the 5th and 6th centuries AD. It has also been mentioned that Barda, Nakhchivan, Ganja, Shamkir and other cities in Azerbaijan exported textiles made of cotton. In the 15th century, cotton produced in Shamakhi was exported to Russia. Cotton growing areas have generally been the Mil-Mugan and Shirvan plains, and Salyan-Mugan, Mil-Karabakh, Shirvan and Ganja-Qazakh in the central region. The high rate of cotton production in Azerbaijan can be observed in Beylagan, Zardab, Sabirabad, Saatli, and Barda regions. As new technologies advance together with the favorable climate and soil in Azerbaijan, the country currently has the capacity to reach the high levels previously experienced in the country. New varieties of cotton such as the sorts from Mazandaran, Yerevan, Egypt and America were introduced in the 19th century. In the early 19th century, the country had under cotton which produced about 65,000 tonnes. In the 19th century, travelers had noted that cotton as a summer crop, locally known as ṣayfī, was sown around April and harvested in dryer regions of Azerbaijan in October. Cotton grown was of the coarse short-staple variety. However, it was also noted that in view of high costs of transport, unacceptable cleaning processes and unreliable packing standards have resulted in decline of its demand in the markets