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

Singh, K.M. and Ahmad, Nasim and Pandey, Vagish Vandana and Kumari, Tulika and Singh, Ritambhara (2021): Growth Performance and Profitability of Rice Production in India: An Assertive Analysis. Published in: Economic Affairs , Vol. 66, No. 3 (14 September 2021): pp. 481-486.

Abstract

Rice is the most important staple food of the country consumed by about 65 per cent of the population (Singh and Singh, 2020). It is grown in almost all the states, however, the major rice producing states with respect to its share in total rice production of the country during 2018-19 are West Bengal (13.79%), Uttar Pradesh (13.34%), Andhra Pradesh including Telangana (12.84%), Punjab (11.01%), Odisha (6.28%), Chhattisgarh (5.61%), Tamil Nadu (5.54%), Bihar (5.19%), Assam (4.41%), Haryana (3.88%) and Madhya Pradesh (3.86%). In the present study, an attempt has been made to assess 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 results of the investigation revealed that compound growth rate of area under rice was almost constant in the country during the period under investigation while it was fluctuating across the states but growth rates of production and productivity was found positive and significant. Instability indices of area under rice were found to be less as compared to production and productivity. Although production of rice has increased due to technological changes in cultivation practices but increased instability in production also indicated distress in rice production across the states. Most of the States registered negative profitability in rice cultivation and only the farm business income was found to be positive. Hence, policy makers, planners and stakeholders should formulate policies to sustain the rice farming in the country for food security of the nation. Restriction may be imposed on purchase of rice below MSP or government may adopt proper mechanism to stop distress sale of farm produces particularly rice. As paddy is water consuming crop and sustainability of ground water and other natural resources is threatened from paddy cultivation in areas with scarce groundwater specifically in states like Punjab and Haryana. It would adversely affect food security in the long run. Hence, farmers should be encouraged to shift out from paddy cultivation in the states where groundwater is depleting and should only grow paddy in water surplus areas keeping the sustainability of groundwater in mind.

• Item Type: MPRA Paper
• Language: English
• Keywords: Rice, Growth, Instability, Profitability, Loss, Farm business income
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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