Pradeepa Babu, B.N. The study was undertaken on groundnut and coconut crops in Tumkur district of Karnataka during 2005-06 to study the economics of Integrated Pest Management (IPM) technology, resource productivities, externality and the constraints faced by the farmers during the adoption of IPM technology. The net returns obtained in the IPM farms are relatively higher than the non -IPM farm in both the crops. The resource productivities of coconut farms indicates viz, chemical fertilizers, human labour, cost of plant protection chemicals, silt, and bio-control agents showed positive relationship with gross returns. The dummy variable highly significant and positively influence on returns explained that the higher the percentage of IPM adoption, the farmer would receive higher returns.