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The growing water demand has raised serious concern to the future of irrigated agriculture in many parts of the country. Therefore, the knowledge of crop water demand is an important practical consideration to improve the water use efficiency in irrigation practices. The traditional irrigation systems provide unnecessary irrigation to one part of a field while leading to a lack of irrigation in other parts. Changing environmental conditions and shortage of water have led to the need for a system which efficiently manages irrigation of fields. The aim of this paper is to review the need of soil moisture sensors in irrigation, sensor technology and their applications in different aspects of agriculture and in irrigation scheduling.