Economic Viability and Sustainability of Rice What Cropping Systems in the Indo-Gangetic Plain

Abstract

Since the Green Revolution, the share of rice and wheat in the gross cropped area has increased across the Indo-Gangetic Plain (IGP) states; however, total factor productivity (TFP) growth has stagnated. Although several studies have examined the rice-wheat cropping system (RWCS) and its sustainable diversification options, most are based on field experiments, offering limited insights into real-farm economic dynamics. This study evaluates the resource use efficiency and diversification potential of RWCS using secondary data from the 77th round of the NSSO Situational Assessment Survey. The Cobb-Douglas model has been used for the analysis of resource use efficiency. The findings reveal that the marginal productivity of irrigated land was highest in Punjab and Haryana, but the marginal value product of electricity expenditure for extracting groundwater was negative, indicating inefficient use of electricity expenditure. Excessive fertilizer use in these two states also raises concerns about sustainability. In contrast, Bihar and Uttar Pradesh exhibit underutilization of seed expenditure, suggesting potential gains through improved seed adoption. RWCS showed decreasing returns to scale across the IGP, except Punjab. Diversification with rabi maize or sugarcane enhances the benefit-cost ratio due to assured prices, while pulses and oilseeds yield lower returns due to weak price realization.