Growth Performance and Profitability of Rice Production in India: An Assertive Analysis

Abstract

This study assessed the growth trends and instability in area, production and productivity of rice in major rice growing states during the period 2001-02 to 2018-19. The study revealed that compound growth rate of area under rice was almost constant in the country during last two decades, while it was fluctuating across the states. However, growth rates of production and productivity was found positive and significant. Instability in area under rice was less as compared to production and productivity. Although production of rice has increased due to innovations and adoption of new farm technologies, but a greater instability in production, indicated the influence of irregular monsoon on production during the study period. Many of the States registered negative profitability in rice cultivation and farmers get handful returns only when the farm business income was calculated. To provide better protection to the farmers through restriction on purchasing rice below MSP or government may adopt proper mechanism to stop distress sale of farm produces particularly rice. Highlights m Area under rice cultivation in India was found to be more or less stagnant over last two decades. m Rice production has increased due to farm innovations but increased instability in production increased distress to the rice growers. m Many of the states registered negative profitability in rice cultivation and only farm business income was positive. The continuum growth of population and changing dietary preferences have raised the food demand and are imposing threat to food security at global level (Dzanku et al. 2015; Godfray et al. 2010). To maintain the food security, expansion of arable land and intensification of agriculture are two major factors to address the food demand of the growing population (Licker et al. 2010). With the limited land resources; it is difficult to meet out the increasing food demand. Net sown area is declining over the years as the agricultural lands.