Basic data from the literature on the nature and impact of the adoption of hybrid rice in China and experiences in other research centers were gathered. Additional supporting data were collected from farmers' fields in the major rice-growing states in India where rice hybrids were released recently. All these data formed the basis for this study. Hybrid rice outyields existing conventional high-yielding varieties by 1-2t ha-1 in irrigated environments. The adoption of hybrid rice would shift the production function farther upward and the increased rice output in irrigated areas would result in a higher domestic supply. In the short run, this could lead to a further widening of the income inequalities between irrigated and unirrigated regions.