The Best Management Practices (BMP) for minimizing losses due to tannery pollution were identified through the linear programming technique along with extensions of averting expenditure for crops and allied activities of dairy and poultry. The constraints specified in the model included minimum land constraints for paddy and fodder crops. In seriously affected farms, the BMP suggested practices were either raising of paddy I, fodder sorghum I, sorghum II and maize II along with 50 per cent increased application of averting inputs from the present level or raising of paddy I, fodder sorghum I and maize I along with dairy activity. The BMP suggested practices for moderately affected farms were raising of paddy I, fodder sorghum I, fodder maize I and either raising coconut or practicing dairy. The BMP suggested practices for low affected farms were raising of paddy I, fodder sorghum I, fodder maize I and either raising of sugarcane and coconut or practicing dairy activity. Thus the farmers could adopt combination of tolerant crops along with increased application of averting inputs and practice dairy activity based on the pollution level.