The economics of hybrid rice seed production has been compared with HYV rice cultivation in the Karimnagar and Warangal districts of Andhra Pradesh where more than 85 per cent of the total hybrid rice seed of the country is being produced by contract farming. Farm level data from hybrid rice seed producers were collected through surveys in the study area. The data pertained to kharif 2010. The comparison of costs and returns from HYV rice cultivation and hybrid rice seed cultivation has revealed that gross returns, net returns and B-C ratio were higher in hybrid than HYY rice cultivation. The private seed companies entering into contract with the farmers provide technical advices on crop management apart from supplying the critical inputs for seed production. Contract farming shall be vital in ensuring a more rapid growth in the area under hybrid rice seed production for the development and adoption of hybrid rice technology in the country.
Contract farming, HYV rice, hybrid rice, Andhra Pradesh
