The physico-chemical characteristics of Amlai paper mill industry effluent were measured and some were found to be above the permissible limits prescribed by Indian irrigation water standard. A study was conducted in pots to investigate the effects of different concentrations (10, 20, 30, 40, 50, 60, 70, 80 and 100%) of paper mill effluent on growth and production of rice, mustard and pea for three years. The study reveals that the paper mill effluent has deleterious effect on the growth of crop at higher concentrations. However, at lower concentration (viz. 10 to 40% in rice, 10 to 50% in mustard and 10 to 60% in pea) of effluent, beneficial impact on general welfare of the crops was noticed. Growth and development was increased with increasing the concentration of the effluent up to 30% in rice, 40% in mustard and 50% in pea. Investigation showed that the growth and production of rice, mustard and pea was found maximum at a concentration of 30, 40 and 50% effluent respectively.