The development and promotion of hybrid rice is a strategy being pursued by the government to attain self-sufficiency in rice supplies and improve farmers' welfare. On-farm experiments have shown significant yield advantage of hybrid rice over the best-inbred rice varieties. The government launched a special hybrid rice promotion programme during 1999-2000 and has been providing subsidy on seeds as a special incentive to farmers. The private sector, including a Chinese company is also actively involved in research and seed production. But the adoption of hybrid rice is still at a low level. This paper provides some insights into the constraints to expansion of hybrid rice technology.