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May 9, 2026Open Access

Is Paddy Cultivation Profitable in Telangana? Evidence from CACP Data

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This study aims to investigate the profitability of paddy cultivation in Telangana using recent cost and return data.
Analyzed cost and return data from CACP for the period 2017-18 to 2021-22.
Calculated operational costs, fixed costs, total cost of cultivation, net income, and profitability ratios.
Operational costs grew at a CAGR of 8.92%, while fixed costs increased marginally by 0.12%.
Net income increased by 8.12% at Cost A2+FL but declined by 44.84% at Cost C2.
The profitability ratio was 1.43 at Cost A2+FL and 1.00 at Cost C2, indicating diminished profitability with higher fixed costs.

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Randomized trial investigates profitability of paddy cultivation in Telangana, suggesting cost control measures.

Kumar et al. (2025) studied this question.

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