In this study, the cost of groundwater extraction, impact of groundwater depletion on farm income, wateruse
efficiency, technical efficiency in crop production and costs of groundwater depletion among different
categories of farmers have been reported. The study has been conducted in the Chamarajanagar district of
the Karnataka state, where groundwater is the major source of irrigation. Data have been collected from
over-exploited, semi-critical and safe villages. The study has shown a wide difference between large and
small farms in their access to groundwater resource in terms of cost. The functional analysis has revealed
that farm income is lower in over-exploited and semi-critical villages compared to safe villages. The mean
technical efficiency in crop production has been found highest among farmers in over-exploited villages.
The total cost of groundwater depletion has been reported more in over-exploited villages and the cost
increases with increase in the size of holding. The impact of this cost would be maximum on small and
marginal farmers because of their low resource base and limited means of income. The study has emphasized
on the need for incentivising for efficient use of groundwater by adopting efficient irrigation technologies
like drip, sprinkler, etc. to ensure livelihood security
