Understanding agricultural risks and the ways of managing it are very crucial in the context of their impact on agricultural production and livelihood of the people, particularly in a water limiting environment. Although the use of high-yielding varieties has brought huge gains in yield, variability is still a formidable production risk in a rain-fed environment. Estimates show that the intensity of drought is higher during the maximum tillering stage of rice production, emphasising the need for developing drought-resistant rice varieties. It is imperative that the varieties meant for a water limiting environment should ensure minimal level of yield during the stress period and this could induce the farmers to go for a higher level of adoption. Continued research on development of drought-tolerant rice varieties and seed supply management are crucial.
