India is the second largest producer and consumer of rice in the world with cultivating area of around 37 million ha and produces 88 million tons annually. Transplanted rice (TPR) system is common in rice production areas of dry zones in Karnataka State, India. However, TPR is labor, water and energy intensive, and is becoming less profitable as these resources are continuously becoming expensive and scarce. Due to these disadvantages, a major shift on rice production system from TPR to direct dry-seeded rice (DDSR) has occurred with wide adoption in several Asian countries including India. Sustaining yield and economic stability of DDSR needs to be considered before setting into large scale adoption of the emerging rice production system in the dry zone areas.