Bakanae disease infestation levels of 5, 10, 25, 50, 75 and 100% seedlings were compared with non-infested control in a field trial. According to the results treatments with 5, 10, 25, 50, 75 and 100% infestation had significantly lower paddy yields of 4.15, 3.95, 3.75, 2.97, 2.45 and 1.87 t/ha respectively against 4.45 t/ha paddy yield in the control. Losses of 57.97% were recorded in 100% infested treatment producing 68.40% seedling infection. The study indicated the potential of the disease to cause heavy economic losses.