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Benefits of high- yielding varieties of rice along with the distribution of these benefits among producers and consumers under two scenarios of closed vs. open economy for the period of 1370-1377 are considered in this paper. The results based on autarky assumption indicated that consumers are the only beneficiaries from rice breeding research (51 billion rials), while producers lose approximately 28 billion rials. Under free trade, the producers benefit 15 billion rials from the program while consumers earn null. In the latter case we will have considerable savings in forigen exchange (18 billion rials). Moreover, the results show that under autarky assumption the sensitivity of total welfare gains with respect to supply and demand elasticities are — 0/01 and -0/11, respectively. Under open economy a rise in supply elastisity from 0 to 1 results in 15 percent increase in savings in foreign exchange.