Abstract
This paper aims to assess the profitability of rice cultivation and its determining factors in Kuttanad Wetland System situated in the southern part of Kerala. An analysis of the data collected from a sample of 172 farmers in the region revealed that the cost of rice cultivation in the region was higher, but the productivity was lower. As a result, the average per-acre revenue earned by farmers was just enough to cover the cost of cultivation without leasing and some normal profit. Although majority of farmers earned a profit, an assessment of the profitability of rice cultivation showed that per acre annual profit was only Rs. 15,205 due to single cropping, higher cost of production, lower productivity and absence of proper institutional intervention. The econometric analysis of the determinants of profitability reveals that land size, machinery cost, pesticide cost and age of farmer have a significant positive impact on profitability. In contrast, leased-in land, labour and fertiliser costs have a significant negative impact. The study suggests strengthening institutional support to farmers to promote rice cultivation in the region
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