Profitability analysis of rice (Oryza sativa L.) farming in northeastern hill region of India: Micro-economic insights

This study examined the profitability of rice farming and its socioeconomic determinants in the Northeastern Hill (NEH) region of India. To achieve this, a multistage sampling technique was used to collect cross-sectional data from six rice-producing districts in the region in 2022. A total of 300 participants were directly interviewed using a structured questionnaire. In addition to descriptive analysis, benefit-cost and functional profitability analyses of rice were conducted. The results of the cost-benefit analysis indicate that rice farming is a profitable activity in the NEH region, as the estimated cost of production was lower than the return in the selected study areas. However, profitability differs among farmers in different agro-climatic situations, and those who opt for high-yielding varieties (HYV) are more profitable in rice cultivation than those who use local varieties. Farmers in the Sub-Tropical Plain Zone and Mild Tropical Plain Zone who were in the high category of profitability in HYV rice cultivation, particularly those who used RC Maniphou-7 and RC Maniphou-13 varieties, had notably high profitability. Despite being profitable in cultivation, the Alpine zone exhibits the highest profit gap between HYV (Pant Dhan-10) and local varieties (Attey Dhan). The study also indicated that, among the selected variables, education and family size had a positive and significant influence on the profitability of rice production for the pooled data. However, variables such as the involvement of middlemen and price fluctuations, were found to have a negative impact on profitability in rice production. Furthermore, these factors vary among farmers in different Agro-Climatic Zones (ACZs) in a region. Hence, addressing these variables and tailoring policies to the specific conditions of each ACZ are crucial for promoting sustainable and profitable rice production.