State offers relief to cotton farmers | mumbai | Hindustan Times
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State offers relief to cotton farmers

In a bid to help the cotton farmers, the state cabinet on Wednesday approved the state’s first textile policy that aims at creating infrastructure and ready market for the 6.2 million bales of cotton produced annually in Maharashtra.

mumbai Updated: Dec 29, 2011 01:40 IST
HT Correspondent

In a bid to help the cotton farmers, the state cabinet on Wednesday approved the state’s first textile policy that aims at creating infrastructure and ready market for the 6.2 million bales of cotton produced annually in Maharashtra.

The policy has estimated an investment of Rs 40,000 crore and creation of 11 lakh new jobs through sops offered to developers of new spinning mills, co-operatives, power looms, garment manufacturing, textile parks, and so on.

Under the policy, developers will be offered 12.5% interest subsidy on long term loans, which will translate into 0% interest to co-operative spinning mills and 2 % interest for private mills and units.

For cotton growing regions of Vidarbha, Marathwada and North Maharashtra, other than this subsidy, the state government will offer share capital as grant in aid of up to 10% of the capital investment. This grant will be made available for those units, that have been approved under the centre’s Technology Upgradation Financing Scheme.

The government hopes the policy will go a long way to resolve he agrarian crisis for cotton cultivators, by providing for them a ready market. While Maharashtra produces 6.2 million bales of cotton annually, less than one third of the cotton produced gets processed in the state.

Chief minister Prithviraj Chavan, while talking about the policy had said, “Cotton growers can’t bargain for prices because the trade is in the hands of middlemen or agents.

Through this policy, we hope to create infrastructure in these areas that will provide competitive prices to farmers.’’ The state government will invest Rs 2,111 crore in the coming five years under this policy. It is estimated that 1,200 units will get share capital of up to 10% while 911 units will be given interest subsidy.

In a bid to encourage co-operative dyeing, printing, processing mills, the policy has also assured state investment of up to 40 % in such units.