One third of the world's paddy area is in India (i.e.) 83 million hectares. Agriculture contributes over 25 percent of the Gross Domestic Product and provides food for a population of over billion and livelihood to over 70 percent of them. Tamil Nadu is one of the major paddy producing states in India. Economy of Cuddalore district is dependent an agriculture.
In the study average cost per acre, was found higher in the case of large farmer compared to other farmers' category. The various cost components of High Yielding Varieties of paddy in the present study area results reveals that cost of human labour had major share followed by cost of chemical fertilisers and 76.16 per cent of variation in yield caused by five explanatory variables. The capital flows had a greater influence on the determination of yield, by the variables such as human labour, fertilizer and pesticides.