The present study is aimed at assessing the impact of watershed development on the energy efficiency in groundnut cultivation. Overall technical, pure technical and scale efficiency increased by 11, 3 and 12% over the pre-watershed scores due to watershed development. Estimated potential for saving input energy was 3608, 3223 and 2907 MJ ha -1 for marginal, small and large farmers respectively, in groundnut production while maintaining status quo for energy output. Farm size, age of farmer, number of livestock owned and implementation of watershed activities were identified as key determinants for higher overall energy efficiency.Keywords: Data envelopment analysis, energy efficiency, groundnut, soil and water conservation.ENERGY, economics and the environment are mutually dependent 1 , and there is a close relationship between agriculture and energy 2 . Agriculture has become an increasingly energy-intensive sector in the last half a century, with much of it attributable to necessary inputs. For example, chemical fertilizers and pesticides require much greater energy to manufacture than to apply on-farm 3 . With rapid depletion of non-renewable energy sources, rapid population growth and environmental degradation energy use in agriculture has become an issue of concern 4 , as evident by deteriorating water and land resources and their contribution to global warming through increased emission of greenhouse gases 5,6 . Therefore, energy-efficient crop production is vital for reducing environmental hazards, preventing destruction of natural resources and ensuring agricultural sustainability 7 . In India, various studies have been conducted to determine energy efficiency in crop production. Nassiri and Singh 8 observed that small farmers in Punjab realized high energy ratio and low specific energy requirement compared to large farmers growing paddy. Mandal et al. 9 suggested that on the economic front, based on net return, soybean-wheat system is marginally better than other systems, but soybean-chickpea system is more suitable in central India due to its low requirement for non-renewable resources and higher energy use efficiency. Similarly, Singh et al. 10 showed that zero and minimum tillage saved more energy than conventional tillage under rainfed soybean-based cropping systems. Based on outputinput ratio, Singh et al. 11,12 suggested that cultivation of green gram (6.8) is more remunerative compared to pearl millet (4.8) and wheat (3.2). They also observed that cotton consumed the highest energy, followed by wheat, mustard, maize and cluster bean; however in all crops the consumption of non-renewable energy (73.2%) was higher than renewable energy.Existing literature mostly substantiates the scope for improvement in energy efficiency in various crops, but none of these deals with the impact of watershed implementation on energy efficiency of crops grown in watershed areas treated with soil and water conservation measures. Watershed is a land-based programme, which is mainly focused on water, with its mai...