When pricing of irrigation water is done on flat rate or crop rate basis, n se rates are specified per hectare of each sown crop, cultivated by cultivators.

According to pricing of irrigation water groundnut is priced four times wheat crop even though groundnut uses only one-third of water used by wheat. But groundnut is priced more because reason is that groundnut has a higher earning capacity compared to wheat. So, refore from this we can say that groundnut is a cash crop and wheat is a food crop.

The specified rates in crop rate system of pricing depending on factors like water requirement of each crop, and earning capacity of that crop.

This system does help cultivators for economizing in use of water because cultivators will be charged at a flat rate for area of crops grown. So, refore cultivators will never bor to wastage of water and will use water recklessly.

As this method does not encourage cultivators to economically use water, it leads to over utilization of water which in turn leads waterlogging, salinity of irrigated lands, and wastage of precious irrigation water, which ultimately leads to scarcity of irrigation water.

The field assessment in crop rate revenue system, area required by each crop grown by cultivators is carried out and recorded by patwari at time of sowing, cultivating, and harvesting.

We cannot expect a complete yield from complete area of crops sown. Due to natural calamities or due to human made mistakes yield of crop may decrease. So, when failure of crop occurs due to reasons which cannot be controlled by cultivators, canal officers have authority to grant remissions to cultivators in full or part.

In this type of system measuring devices like water meters, modular outlets, and venturi meters at outlets of irrigation minors because in this pricing of irrigation water is done on basis of actual consumption of water by each cultivator or by a group of cultivators like society.

This type of system is not in practice in India even though it provides inherent advantages towards economic use of irrigation water due to high installment and maintenance cost of measuring devices.

Volumetric method of pricing can be efficiently used in tube well irrigation because process billing can be done on information of a number of units of electricity utilized in running a particular tube well supplying water to a particular society of cultivators.