Agriculture forms a vital part of Karaikal's identity and rural economy, owing to its location in the Kaveri river delta. The primary crop is paddy (rice), heavily reliant on the release of water from the Mettur Dam in Tamil Nadu and the seasonal monsoons.
In addition to rice, farmers cultivate pulses such as black gram and green gram, along with cotton, groundnut, and sesame. Coconut groves and banana plantations are also common. Fisheries play an equally crucial role; marine fishing is conducted extensively along the Coromandel Coast, while aquaculture and inland fishing take place in the estuaries and river branches.
