Red gram (Cajanus cajan) is an important pulse crop in India. Red gram is also known as Tur, Arhar and Pigeonpea. Red gram is a staple food and rich in protein. It contains about 22 per cent of protein, which is almost three times of cereals. It is resistant to drought and suitable for dry land farming and predominately grown as an intercrop with other crops. The present paper attempts to show the economic efficiency of the new variety of red gram crop BRG 2 developed and released by University of Agricultural Sciences, Bangalore (UAS B), Karnataka compare to the check variety TTB 7. The data needed for the study collected from the farmers in southern region of Karnataka state. The cost concepts and Data envelopment analysis are used to measure the economic viability and economic efficiency of improved variety of red gram crop. The results showed that the net return (with red gram as pure crop) was the higher (` 5, 629 per acre) for BRG2 red gram farms than (` 3,936 per acre) for check variety farms, with a difference of

` 1,692, by 30 per cent. DEA analysis shows that farmers of BRG 2 have greater economic efficiency, allocative efficiency than check variety farmers using inputs such as seed, farm yard manure, chemical fertilisers, human labour, bullock labour, machine labour and plant protection chemicals. The BRG 2 red gram variety is economically performing well in field conditions and offering higher returns to farmers compared to the check varieties. Hence the Department of Agriculture, GOK can popularise and encourage the widespread adoption of red gram BRG variety for improving the nutritive capacity of farmers and consumers.