A paddy round straw baler was introduced in the Kizhakkekarimpadam of Thrissur Kole lands, Kerala and studied its performance. Experiments were conducted with paddy round straw baler in Combine harvested paddy field. The average weight of bale was 12 kg and size was 0.70 m length and 0.50 m diameter. The baler gave an output of 50 bales per hour and field capacity of the baler was 0.20 ha/hr. The average number of bales produced was 250/ha and fuel consumption was 3 litre/hour. The cost of baling per hour, per bale and per hectare were estimated and were ` 655/-, ` 13/- and ` 3275/- respectively. Cost analysis of baling revealed that farmers get an additional income of ` 10,500-18,000/-per hectare through baling. The economic parameters namely pay back period (PBP), benefit cost ratio (BCR), net present value(NPV) and internal rate of return(IRR) calculated for service charge of ` 2/kg of straw had shown that bailing as an enterprise is viable and profitable.