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Not AvailablePaddy plays a vital role in the national food security and principal food crop cultivated throughout the Telangana state providing food for its population, fodder to the cattle and employment to the rural masses. The present study was based on primary data in Karimnagar district of Telangana during the agricultural year 2014-15. Analysis of data shows that majority of seed farmers belongs to small category (1-2 ha) followed by semi-medium (2-4 ha) and marginal (< 1 ha) category. The overall average land holding size of paddy seed farmers was 2.04 ha followed by grain farmers (1.27 ha) and district average (1.03 ha). Study area was dominated by paddy, cotton and maize with a cropping intensity of 159. Net irrigated area of paddy grain producer, certified seed producer and district average was 71.00, 90.60 and 73.95% respectively. Non-availability of labour was the most important constraints hindering adoption of paddy seed production technology. The seed production area is dominated by variety BPT- 5204 which covers 31.57% area under paddy seed production. Current study illustrates a ratio of 32:68 towards fixed and variable costs in paddy certified seed production with a total cost of Rs. 57315 per hectare and the gross and net returns were Rs. 83150 and Rs. 25835 per hectare respectively. The total cost of cultivation in paddy seed production was around 13.63% higher than grain production while, gross return was about 28.42% higher in seed production. Consequently, net return from seed production of paddy was 80.56% higher than grain production. Hence, production of certified seed has resulted in a win-win situation for the farmers with higher yield and increased returns. Higher yield and profitability associated with certified seed production can be effectively popularized among farmers, results in increased certified seed production. Farmers can be promoted in this endeavour by providing required quantity of foundation seed along with technical guidance.Not Availabl