Profitability of Black Rice: Evidence from Manipur, India

Abstract

The study was conducted in the valley region of Manipur with the objective of analyzing the comparative cost and profitability of black rice and normal rice during the year 2022-23. A sample of 180 rice growers consisting of 120 black rice and 60 normal rice growers was selected for data collection using snowball sampling procedure. The cost of cultivation was estimated using the approach recommended by the Special Expert Committee of Commission for Agriculture Cost and Prices (1979), profit measures and break-even point analysis were applied to achieve the stated objective. The result showed that black rice was found to be highly profitable to the farmers as compared to normal rice. The cost of cultivation of normal rice is estimated to be higher mainly due to higher expenditure on machinery charge, labor charge (hired and family) and fertilizer and manure. The break-even point was estimated to be lower than that of normal rice, which indicates that producers can achieve a no-profit-no-loss situation at a lower level of production than that of normal rice. The benefit-cost ratio of black rice was higher than that of normal rice indicates high profitability of the black rice cultivation. Since the cultivation cost of black rice is less but high market price of produce becomes it highly profitable for farmers. Therefore, it is suggested that the extension agent should conduct awareness programs to encourage the farmers to produce black rice commercially, which would be helpful in enhancing the livelihood and sustainable income to the farmers.