This study on paddy cultivators in Andhra Pradesh and Telangana identifies the reasons they adopt new seed varieties and assesses the impact of adoption on their net returns. This study is based on a primary survey. It uses Cragg's double hurdle model and two-stage least square regression for the empirical analysis for determining the drivers and impact of adopting new varieties, respectively. The adoption of new seed varieties brings farmers significantly higher profits. Adoption is influenced by forward caste, family and farm size, absence of irrigation, farmer's perception of climate change in past years and soil type. Government agencies play a key role in the development of new paddy varieties. The study will contribute towards evolving strategies for expanding the adoption of modern technologies, especially new seed varieties, at the farm level.
