Profitability Analysis of Aromatic Rice Production—A Study on the Unique Rice Variety in Assam

Abstract

The state of Assam is blessed with a unique variety of aromatic rice called Joha rice. However, at present times the production of this indigenous variety has reduced to a great extent. As such, the objective of the study is to analyse whether production of Kola Joha is a profitable investment. In order to show the relationship between cost and return and thereby the viability of investing in production of Kola Joha rice, the researcher has also found it relevant to study the Benefit Cost Ratio (BCR) and Break Even Point (BEP) analysis. The researcher has conducted Snowball Sampling Method and could approach 20 farmers from the Kakopathar block of Tinsukia District, Assam, who were extensively engaged in production and selling of Kola Joha. The survey results indicate a profit margin of Rs.5 per kg and Rs 4343.75 per acre respectively, whereas the BCR value turned out to be 1.38 making it a good acceptable investment to the farmers. The BEP analysis revealed that a farmer will be in a state of equilibrium, if he undergoes production at 313kgs per acre of land. The overall survey analysis thereby indicates a viable and profitable investment to the farmers, encouraging them to take up production of the same.