Year: 2023 | Month: December | Volume 68 | Issue 4

Financial Performance and Potential Feasibility of Black Rice (Oryza sativa L. Indica) Cultivation in Assam: An Empirical Study

Bidyutt Bikash Hazarika and Deb Kumar Chakraborty
DOI:10.46852/0424-2513.4.2023.3

Abstract:

This paper explores the economic and financial performance of black rice production in the upper
Brahmaputra valley region of Assam. Black rice, known for its rich nutritional value and cultural
significance, has gained attention from agri-entrepreneurs and development projects aiming to promote
its cultivation. The study employs various accounting ratios, such as gross profit ratio, profit-volume
ratio, and expenses ratio, to assess the profitability and financial health of black rice farmers in three
different categories based on farm size. Through a comprehensive analysis of primary data collected from
170 farmers, the study reveals that category C farmers, with the largest farm size, achieve the highest
average gross profit and gross profit ratio, followed by category B and category A. Similarly, category
C farmers incur higher expenses on machinery and fertilizers but maintain the lowest expense ratio.
Conversely, category A farmers have the highest expense ratio but achieve the lowest average gross
profit and profit volume ratio. Break-even analysis and margin of safety are employed to understand
the profitability and financial strength of black rice farmers. The study finds that category C farmers
have the highest break-even point and the highest margin of safety ratio, followed by category B and
category A. The research concludes that black rice cultivation holds immense potential for economic
growth and livelihood improvement in Assam. However, despite favorable agro-climatic conditions,
commercial production remains limited. Further research is needed to understand the barriers to scale up
production and promote the systematic adoption of black rice cultivation to achieve nutritional security
and enhance livelihoods in the region.

Highlights

  • This study aims to assess economic and financial performance of black rice production in Assam.
  • Study employs various accounting ratios (gross profit ratio, profit-volume ratio, and expenses ratio) to assess profitability and financial health of black rice farmers in three farm size categories.
  • Black rice cultivation shows potential for economic growth and livelihood improvement in Assam.




© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Print This Article Email This Article to Your Friend

Economic Affairs, Quarterly Journal of Economics| In Association with AESSRA

25443945 - Visitors since February 20, 2019