This study investigated the on-farm feed formulation and its management strategies for enhance higher economic efficiency of Tilapia culture (Oreochromis niloticus). The feed was prepared on the basis of feed requirement of tilapia. The new proposed feed formulation and feeding method contributed significantly in reducing operational cost of tilapia farming. This was better than the existing practice carried by the small scale fish farmers. The total cost of new formulated feed was Rs.16.71 kg-1 on wet basis (moisture 8.91 per cent) and the new formulated feed cost accounts 43-57.36 per cent in the gross revenue with 80 per cent satiation. Partial replacement with fish meal @ 22 per cent, soybean meal @ 26 per cent, rice bran @ 26 per cent and maize flour @ 22 per cent with corn oil 2 per cent, vitamin premix 1 per cent and mineral premix 1 per cent in the new feed formulation was contributed in reducing feed cost and more economic efficiency in tilapia farm operation. The formulated feed was tested by conducting an experimental study of 8 weeks duration, with a population of male Nile tilapia fry stocked @ 400 individuals in cement tank. Growth of tilapia fingerlings during prolonged nursing with formulated feed (56 days) in cement tank, were compared with fish nursed with commercial feed in cement tank. The tilapia with 0 per cent formulated feed showed stunted growth. Mean daily weight gain of stunted tilapia were 0.012 g fish-1 day1, 0.06 g fish-1 day1 for 50 per cent feed fed and 0.10 g fish-1 day1 for 100 per cent feed fed were as  0.19 g fish-1 day1 for 100 per cent feed fed in cement tank.