Profitability and Resource Efficiency in Hybrid Rice Seed Cultivation under Contract Farming

The increasing demand for rice can be met only through firm increase in production and productivity. The inbred varieties’ yield is stagnating; and among limited options hybrid technology is the only proven technology available for increasing rice production. The agro-climatic conditions of Telangana are conducive for hybrid rice seed production. The private companies have shown interest in hybrid rice seed production through contract farming. Present study was taken upto examine profitability and resource use efficiency in hybrid rice seed production. Primary data pertaining to 2013-14 was collected from 90 farmers of Karimnagar district.The net returns (Rs.65962 per ha) over cost C₃ indicates that hybrid rice seed production is a profitable venture. Operational cost occupied about 60 per cent of total cost. Inputs seed, manures and fertilizers, plant protection chemicals and growth regulator were used sub-optimally, while the machine power was used excessively. The farmers need training on hybridization skills and resource use. The package of practices of crop operations based on mechanical techniques need to be evolved to reduce dependence on human labour and to reduce cost of seed production.