Economics of Basmati Rice Cultivation in Punjab

India witnessed a noticeable surge in basmati rice production attributed to the expansion of cultivation areas, improved yield and increased demand in international market.Present study examined the economic aspects of basmati rice cultivation in Punjab, India.Results revealed that the average size of operational holdings per household was 14.1 acres.Pusa 1509 and Pusa 1121 varieties of basmati rice were majorly grown by farmers.The total variable cost for cultivating basmati rice was estimated at Rs. 18261 per acre and the average market price was valued at Rs. 3450 per quintal.Gross returns and net returns were estimated at Rs. 74520 and Rs.56259 per acre, respectively.Basmati rice is more profitable from farmers point of view as farmers fetch better prices of their produce due to the high demand in the international market.Therefore, there is a need to promote basmati rice in the state.This will ultimately boost the country's export and will help to boost the Indian economy.