Abstract
An important input for sustainable agricultural development in hard rock areas is access to groundwater irrigation. In hard rock areas, due to cumulative well interference, the life of irrigation wells and their groundwater yield is gradually declining and creating several externalities. As a result, the dividends of groundwater irrigation are declining. This study is an attempt to assess the impact of declining groundwater on benefits of irrigation in the central dry zone of Southern peninsular India. The study clearly suggests the need for supply and demand side interventions. Therefore, the objective of public policy should be to minimise adverse ecological effects with minimum damage to the interests of the poor in the areas under stress.