The System of Rice Intensification (SRI) – a new approach to growing rice – is gaining rapid momentum in South India. The present study analyses the efficiency of SRI cultivation in the state of Kerala. The study reveals that the major expenditure in SRI is incurred on labour costs and there is a reduction in the cost of seeds. The average yield under SRI is found to be more than 27 per cent higher than that of rice cultivated under the conventional method. The net returns and benefit-cost ratios are higher for SRI farms due to higher productivity of paddy cultivation. Overall, the SRI farmers demonstrate higher efficiency relative to their counterparts under the conventional method. Training facilities and demonstration trials are needed to be scaled up so that more farmers become aware of the SRI technology.