An Economic Evaluation of Improved Rice Production Technology in Telangana State, India

Abstract

The demonstrations on improved rice production technology were organized in the Wanaparthy, Nagarkurnool, Yadadri Bhuvanagiri, and Rangareddy districts of Telangana state of India. These demonstrations were organized under the Scheduled Caste Sub Plan of the Indian Institute of Rice Research during the wet season of 2021. The biofortified varieties assume great significance to achieve nutrition security. Hence, the zinc biofortified rice variety, DRR Dhan 48 was demonstrated on the 142 farmer fields and the economic impact of these demonstrations was assessed with the ‘difference in difference’ approach. The results revealed that the production of rice under demonstration plots was more profitable with a higher benefit-to-cost ratio (B:C; 1.9) compared to that of the control plots (1.4). The independent two-sample t-test revealed that the productivity at the control plots was not statistically different from that of the demonstrations plots (p = 0.112) before the project was implemented, however, with the intervention in the form of the demonstration of improved rice production technology, the productivity differed significantly (p = 0.000) for the control and the demonstration plots for the intervention year. The results of the difference in differences estimator revealed that there was a positive impact of demonstrations on the yield of the beneficiaries. The mean productivity of demonstration plots and control plots were 5.52 t/ha and 4.5 t/ha, respectively. The farmers had an additional yield advantage of 22.6% over the control plots. The results indicated that the adoption of an improved package of practices would enable harnessing higher productivity levels and bridging the yield gaps in similar agroecosystems. Also, the results suggest the practical significance of the popularization of biofortified rice varieties for food and nutritional security.