Economic Analysis of Machine and Hand Transplanted Paddy Cultivation in Thiruvarur District, Tamil Nadu: Evidence from Cost, Resource Use Efficiency and Decomposition Analysis

Abstract

The present study evaluated the comparative economics of machine-transplanted and hand-transplanted paddy cultivation in Thiruvarur district, one of the major rice-producing districts of the Cauvery Delta region of Tamil Nadu. Primary data were collected from 60 sample farmers using a multistage random sampling technique, comprising 30 machine-transplanted and 30 hand-transplanted farms. Cost concepts recommended by the Commission for Agricultural Costs and Prices (CACP) were employed to estimate cultivation costs and profitability. Resource-use efficiency was analysed using the Cobb–Douglas production function, while decomposition analysis was used to quantify the contribution of technological change and input-use changes to productivity differences. Partial budgeting was employed to estimate the economic advantage of mechanised transplanting. The results revealed that machine transplanting significantly reduced total cultivation costs while increasing grain yield, net returns and the benefit–cost ratio compared with conventional hand transplanting. Machine-transplanted farms recorded a Cost C3 of ₹35,047.60 per acre compared with ₹43,779.74 per acre under hand transplanting. Net income and returns per rupee invested were substantially higher under mechanised cultivation. The decomposition analysis indicated that technical change contributed 48.08% of the productivity improvement, while changes in input use accounted for 42.65%. Machine labour emerged as the most influential contributor to increased output. Partial budgeting further demonstrated a net economic gain of ₹11,068.30 per acre from adopting machine transplanting. Nevertheless, constraints such as limited machine availability during peak seasons, a shortage of skilled operators, and transportation difficulties continue to impede wider adoption. The study concluded that machine transplanting represents an economically viable and resource-efficient technology capable of enhancing farm profitability and addressing labour shortages in paddy cultivation. Policy measures focusing on expanding custom hiring centres, improving machinery accessibility, strengthening operator training programmes, and promoting cooperative ownership models could accelerate mechanisation and contribute to sustainable rice production in the Cauvery Delta region.