At the Dassera rally at Shivaji Park on October 2, Thackeray had declared that power would be supplied to farmers, free of cost. However, with the Bharatiya Janata Party objecting strongly, no official order has been issued.

Thackeray told a mammoth gathering at Akola, the home town of rebel Shiv Sena leader Gulabrao Gawande on January 3, that cotton prices will be increased further to protect the interests of cotton growers in Vidarbha and Marathwada. Two years ago, the State Government had increased cotton prices from Rs 1,700 to Rs 2,100 per quintal at Thackeray's instance.

Both the Shiv Sena as well as BJP Cabinet members today admitted that in view of the State's poor financialcondition, it will not be possible for the Government to hike cotton prices further. ``Even the first announcement made by Thackeray two years ago at the official residence of the Chief Minister was uncalled for since there was no demand for hike in cotton prices,'' a senior BJP Minister said.

The Minister said ever since the launching of the MCPS in 1973 following veteran cooperation movement leader Yeshwantrao Mohite's initiative, the scheme has been incurring heavy losses on account of political interference. ``The scheme is based on the guarantee scheme declared by the Centre. However, owing to political pressure, it has been a practice to hike the price beyond the guarantee price,'' the Minister added.

During Congress rule, the Minister said, the basic guarantee price declared by the Centre remained unchanged, while the State Government would give a bonus to farmers. This left scope for reduction or hike in prices. However, with the alliance government having increased the basic price of cotton,there is absolutely no scope to reduce it, the Minister added.

``At this juncture, when the accumulated losses of the Maharashtra State Cotton Growers Federation -- the nodal agency responsible for implementing the scheme -- have crossed the Rs 1,400 crore mark, there is no scope for a further hike in prices,'' the Minister pointed out.

Moreover, the Minister said, successive State Governments have failed to secure a long-term extension for the scheme. ``After the Vajpayee Government came to power, we were expecting a five-year extension for the scheme. However, despite our best efforts, only one year's extension has been granted. It has adversely affected the scheme's prospects,'' he said.

Another flaw in the scheme relates to cotton gradation. During Congress rule, there were four grades, while the alliance government has reduced them to two. ``It is also adversely affecting the scheme, since poor quality cotton, which could have been rejected or accepted in the fourth grade, has now to be accepted inthe second grade at a much higher price,'' he pointed out.

According to a senior official in the Co-operation Department, farmers in Andhra Pradesh, Madhya Pradesh and Gujarat have benefited from the decision. ``Our information is that the prices of cotton in these states is between Rs 1,700 and Rs 1,800 per quintal and a large number of farmers are selling their produce in Maharashtra at the cost of farmers in our State,'' the official added.

The official said owing to the huge price difference, the federation had procured more cotton than was produced in the State, two years ago.