The Present Policy Viewpoint Explores Water Use Efficiency Between The Two Competing Cash Crops Of The Kharif Season, Sugarcane And Cotton. It Is Concluded That The Sugarcane Crop Consumes About 3.5 Times More Water Than The Cotton Crop. Moreover, One Litre Of Water Used In Cotton Production Generates About 4 Times Higher Monetary Benefit At Both The Farm Gate And At The Processing Stage. Sugarcane Alone Consumes About 42 Percent Of The Total Annual Household Water Demand Of Pakistan.