Economics of Rice Ecosystems in Telangana: A Comparative Assessment for Sustainable Policy

Abstract

Rice is the primary staple crop and a key component of agricultural livelihoods in Telangana, India. The present study analyzes the comparative economics of three rice establishment methods Conventional Transplanting (CT), Wet Direct-Seeded Rice (Wet DSR) and Dry Direct-Seeded Rice (Dry DSR) to identify the most cost-effective and sustainable cultivation system. Primary data were collected from 720 paddy farmers across 48 villages in 12 major rice-growing districts of Telangana during the 2023–24 agricultural year using a multistage random sampling technique. The cost of cultivation was estimated by dividing expenses into operational and fixed costs, following standard cost concepts (A1, A2, B1, B2, C1, C2 and C3). The analysis revealed that the total cost of cultivation was highest under CT (₹90,016/ha), followed by Wet DSR (₹73,813/ha) and lowest under Dry DSR (₹61,786/ha). Human labour accounted for the largest share in CT (21.06%), while machine labour dominated in DSR systems, indicating higher mechanization levels. Profitability analysis showed that Dry DSR yielded the highest net income (₹85,356.87/ha) and benefit-cost ratio (2.48), compared to Wet DSR (₹67,960.97/ha; 2.02) and CT (₹37,249.21/ha; 1.51). Despite similar yields across systems, the reduced input and labour costs in Dry DSR contributed to its superior economic performance. The findings suggest that Dry DSR is the most economical, resource-efficient and climate-resilient rice establishment method, offering higher profitability with lower water and labour requirements. Promoting Dry DSR can enhance farmers’ income, conserve groundwater and support sustainable rice cultivation in Telangana.