Date:18/03/2005 URL: http://www.thehindubusinessline.com/2005/03/18/stories/2005031801011700.htm

Back RBI okays loan to clear dues to cotton farmers

Our Bureau

Mumbai , March 17

THE Reserve Bank of India has given the go ahead to the Maharashtra State Cooperative Bank to disburse Rs 1,200-crore loan for outstanding payment to the cotton farmers in the State, according to Mr R.R. Patil, Deputy Chief Minister, Maharashtra.

The Government will disburse the money immediately to farmers, the Minister said in the State Assembly. Since the beginning of the Budget session on Monday, the Opposition were raising the issue of non-payment of dues to the cotton farmers in the State. Stalling the proceedings of the both houses, the Opposition had demanded immediate payment to farmers.

Under intense pressure from the Opposition, Mr Patil assured the State legislature on Tuesday that the Government will make the payment in three days. In the cotton buying session (August 2004 and March 2005), the Government had purchased 2.10 crore quintals of cotton worth Rs 3,745 crore.

Of the dues, the Government had already paid Rs 1,232 crore, while the remaining Rs 2,400 crore are yet to be paid.

In order to clear the dues, the Government had sought Rs 1,200-crore loan from the MSC Bank and the remaining amount would be raised through market borrowings.

Mr Patil also assured the house that the remaining amount would also be paid soon.