The paper discusses the profitability in rice farming using secondary data for the period 1980-81 to 2014-15. The average costs and profits were computed and it was found that cost of cultivation has increased over years, but profit has not increased commensurately. The irrigated states like Punjab, Haryana and Andhra Pradesh have maintained or increased profits over years, but not the rainfed states. There were losses in rice farming in

rainfed states like Assam, Bihar, Odisha, West Bengal and Maharashtra, when total cost of cultivation was considered. Promotional measures and investment by state and central governments are needed to make rice production profitable.