Empirical evidence for economic viability of direct seeded rice in peninsular India: An action-based research

Purpose: This study identified critical constraints in technology adoption for Direct Seeded Rice (DSR) compared with puddled transplanted rice (PTR) practices. We present the impact of DSR technology adoption on paddy yield, income generation, and cost incurred on various farm operations. Furthermore, the study investigates whether a dry DSR practice provides more economic and production benefits than a wet DSR. Methodology: We used a multi-stage sampling (from state to district-to-village-to-farmers) and conducted a face-to-face questionnaire survey to collect primary farm-level data. We collected 669 farm and household-level data and analyzed the impact of DSR and dry DSR adoption over PTR and wet DSR, respectively. Initially, the study employed probit regression analysis to identify the DSR adoption determinants. Subsequently, using the Propensity Score Matching approach, the study measures the impact of DSR adoption over PTR in terms of yield, income, and cost management. Finally, using the PSM approach, the study estimated the impact of dry DSR adoption over wet DSR. Findings: Probit estimates suggest that variables like education, membership in farmers' organizations, farm experience, institutional credit, crop insurance, off-farm income, and smartphone and television ownership positively regulate DSR adoption. The impact assessment analysis reveals that the adoption of DSR over PTR results in marginal yield improvement. However, the cost of irrigation, land preparation, and fertilization is significantly lower in DSR, resulting in an additional income of 5192/acre for DSR adopters. Moreover, a comparative analysis between dry DSR and wet DSR indicates that farmers can achieve 2467/acre by adopting dry DSR. Practical implications: Our research findings designate the necessity for implementing policies and strategies to promote the adoption of DSR among non-adopters. Besides economic benefits, adopting the DSR method can yield environmental benefits, improve soil health, mitigate soil erosion, and decrease water use.