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The aim of this study was to analyse rice production in the Ramanathapuram district in the southern zone of Tamil Nadu, India, to evaluate the efficiency of the production and to identify the main constraints faced by the farmers. The area was divided into two regions as follows: region I representing the area situated less than 5 km from the coastal line and region II representing the area situated more than 5 km from the coastal line. Both regions differed especially in the average size per farm (1.46 vs 2.48 ha in the regionI and II, respectively) gross and net income per ha (Rs. 14,228.50 and Rs. 1,385.49 in the region I and Rs. 19,326.00 and 2,100.69 in the region II. Rice production was more profitable in the region II than in the region I. This was mainly due to the availability of groundwater and use of higher quantities of fertilizers. Soil salinity is the major problem affecting rice yields in the region I.