Rs 107.52 cr to be disbursed as interest on capital of cotton grower

Mumbai, Oct 4 (UNI) Maharashtra Government today decided to give interest on capital fund of cotton growers till March 31, 2006 under the cotton monopoly procurement scheme.

The decision was taken at the weekly cabinet meeting chaired by state Chief Minister Vilasrao Deshmukh. The cabinet has given a go-ahead to disburse Rs 107.52 crore for the purpose.

An official statement issued here said that the the interest on capital will be given bowing to the demand of the farmers and elected representatives.

Under the monopoly procurement scheme, the government had reduced the minimum guarantee price by three per cent to raise the capital fund of cotton growers. A total amount of Rs 768 crore including the interest was accumulated till June 2004 and it was decided on January two, 2006 to return the amount to the farmers.

So far,a provision of Rs 700 crore has been made, the statement added.

In another decision, the cabinet has decided to provide Rs 473.47 crore for agriculture losses, Rs 153.64 crore for damages to houses for those affected by heavy rains and floods in July and August. Till September 30, the goverment has made available Rs 320.58 crore for agriculture losses and Rs 91.29 crore for damage to houses. The Divisional commissioners have been asked to disburse the amount before Diwali.

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