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Abstract
Effluents discharged by several industries, particularly the textile dyeing industry, have led to severe
pollution of surface and groundwater sources and soils, which have ultimately affected the livelihood of
the poor. Environmental problems in the agricultural sector caused by dyeing industrial pollution in Karur
district have been discussed in this study. Averting Expenditure Approach and Contingent Valuation
technique have been employed for this purpose. The farm income and distance between farm and polluted
river have been found significant in deciding the value of polluted lands. The pollution averting expenditure
incurred by the farmers increases with increase in the intensity of pollution. It is mainly the farm income
that determines the pollution averting expenditure. The farmers in the study area are well aware about the
detrimental effects of pollution and they have expressed their willingness to pay for internalizing the
pollution effects even though it is mainly the duty of the polluters.