Mumbai, Oct 29: Succumbing to pressure from ruling Congress and NCP legislators, the cash-strapped Maharashtra government today announced price of Rs 2,500 per quintal for cotton to be purchased under its monopoly cotton procurement scheme. "The government will be paying Rs 2,500 per quintal for cotton purchased from cotton cultivators with a view to provide succor to the farmers of Vidarbha and Marathwada," Chief Minister Sushilkumar Shinde told a post cabinet meeting news conference here.
The move by the government, which earlier had stated that it would be paying the support price of Rs 1,925 per quintal announced by the union government, would cost the state exchequer a sum of Rs 900 crore, Shinde said.
Asked how the cash-strapped government would bear the additional burden, the Chief Minister said his government would have to effect a cut in the state's annual plan. The developmental projects will be affected by this decision, he said. He, refused to quantify the cut in the annual plan.
"As the Chief Minister, I have to give equal justice to all parts of the state and this decision is for the benefit of farmers of Vidarbaha and Marathwada", Shinde said.
The legislators of Congress and NCP, the main constituent of the ruling front, had adopted an aggressive stance over the issue. Congress legislators from Vidarbha had yesterday even threatened to resign if the government fails to announce Rs 2,500 price for cotton.
Bureau Report