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The feasibility of green manuring as part of Integrated Nutrient Management practice in Basmati rice was studied through field demonstrations during the years 2001-02 to 2004-05 in the high potential rice-wheat belt of Haryana. The demonstration yields were compared with farmer practice where no green manuring was done. It was possible to increase the yield of rice by 7.5 per cent through the adoption of recommended INM package. Green manuring could save 80 kg N and 38 kg P2O5/ha in comparison to farmer practice. The role of green manuring in water conservation was evident from extra yield increase during the drought years. However, no residual effect of green manuring in rice crop was observed on wheat crop. The on farm testing was found a very useful instrument for the dissemination of resource conserving technologies where the additional yield or the returns may not be substantial.