The Maharashtra government has asked seed companies to pay a compensation of Rs 1,147 crore to the farmers whose crops were affected by the pink bollworm, a pest, in the Kharif season last year.
In a written reply in the Legislative Assembly, Relief and Rehabilitation Minister Chandrakant Patil said Thursday that the third instalment of compensation was disbursed through the Revenue and Forest department on November 1.
Twelve cotton seed firms have now moved the Bombay High Court against the government's order to compensate, and the court has granted a stay to the payment of compensation to remaining farmers, the reply said.
In Buldhana district, cotton crop on 1.75 lakh hectares was damaged by various pests including the pink bollworm, Patil said in reply to another question.
Farmers had complained that low-quality seeds were responsible for the plants getting attacked by the insect.
The government then announced a compensation of Rs 6,500 per hectare, to be paid by seed companies.
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An amount of Rs 89.56 crore has been disbursed in Buldhana district, and another Rs 44.78 crore were being paid out, the minister said.
In August this year it was found that cotton crop in more than 900 villages was infested with pink bollworm and other pests, the reply said.