Economic analysis of productivity of rice production—A state-wise analysis

The total production of rice has increased in India because of increased allocation of land area to the crop as well as enhancement in its productivity. However, the change in productivity has not been uniform throughout the country. Some states have undergone higher technical change, leading to higher productivity, while others are lagging behind. This is evident from the fact that states of Punjab, Haryana, Karnataka, Tamil Nadu and West Bengal have shown productivity higher than the national average, whereas the states of Assam, Bihar, Orissa, Madhya Pradesh and Uttar Pradesh have achieved relatively lower yields of rice. There is a considerable variation in the profitability of the crop from one state to the other. This is true in a given year as well as over time. Therefore, this paper has examined the productivity of rice, its cost of production and overall profitability for the selected years for major rice-producing states, from the year 1980–81 to 2002–03. The data utilized in the study include yields, farm harvest prices and operational costs. To find the effect of infrastructure available in the state, holding size, use of fertilizer, etc. on net returns from cultivation of rice, multi-variate analysis has been undertaken. The findings of the survey are expected to throw light on the profitability of farmers engaged in rice production. It will also help in providing information for increasing rice production in states where productivity is low.