The Tamil Nadu government had increased its withdrawal from the reservoir, with additional facilities to cater to the increased demand from newly irrigated areas. One news article estimates that "the crop losses to Tamil Nadu, because of the reduction in the height of the dam, between 1980 and 2005 is a whopping Rs. 40,000 crores. In the process the farmers of the erstwhile rain shadow areas in Tamil Nadu who had started a thrice yearly cropping pattern had to go back to the bi-annual cropping."
The Kerala Government maintains that this is not true. During the year 1979–80 the gross area cultivated in Periyar command area was 171,307 acres (693.25 km2). After the lowering of the level to 136 ft (41 m), the gross irrigated area increased and in 1994–95 it reached 229,718 acres (929.64 km2).
An article written in a 2000 Frontline magazine stated:
For every argument raised by Tamil Nadu in support of its claims, there is counter-argument in Kerala that appears equally plausible. Yet, each time the controversy gets embroiled in extraneous issues, two things stand out: One is Kerala's refusal to acknowledge the genuine need of the farmers in the otherwise drought-prone regions of Tamil Nadu for the waters of the Mullaperiyar; the other is Tamil Nadu's refusal to see that it cannot rely on or continue to expect more and more from the resources of an other State to satisfy its own requirements to the detriment of the other State. A solution perhaps lies in acknowledging the two truths, but neither government can afford the political repercussions of such a confession.
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