An Economic Analysis of Terrace Rice Cultivation in Senapati District of Manipur, India

Rice is the way of life, culture and staple food for the people of the NEH Region. Terrace farming is the only practical solution for hilly agricultural land. This study seeks to estimate the cost and returns and resource-use efficiency in Senapati district of Manipur. Using a probability proportional to size sampling technique, 90 farmers from two blocks were surveyed for the study. The results of cost structure analysis revealed that the total cost of cultivation on per hectare basis was estimated at ₹45662.20, ₹47119.94 and ₹46083.33 in marginal, small and overall farms respectively in which hired human labour accounted for about 53.63 and 45.16 per cent of the total cost of cultivation on marginal and small farms. Analysis revealed that terrace rice farming was profitable activity with output-input ratio of 1.23, 1.24 and 1.23 on marginal, small and overall farms. Cobb-Douglas production function analysis revealed that the regression coefficient for seed and fertilizers in case of marginal farms were found to be positive and significant. In small farms seed, plant protection chemicals and human labour turned out to show positive and significant effect on yield. The resource use efficiency analysis revealed that the inputs such as fertilizers and human labour were underutilized in overall farms. Seed and fertilizers were underutilized in marginal farms and seed, plant protection chemicals and human labour were underutilized in small farms. The deviations from the optimal level of resource use resulted in low productivity and inefficiency of various inputs. Research efforts should be focused on this area in order to maximize yield through more effective use of significant inputs.