on july 1, 2006, prime minister Manmohan Singh announced Rs 3,750-crore as relief for cotton farmers of six districts of Maharashtra's Vidarbha region. Around 800 farmers have committed suicide since June 2005. Though the rehabilitation package seems sizeable, it does not take into account the financial realities of the crisis.

The package is for Akola, Buldhana, Amravati, Wardha, Washim and Yavatmal districts. It offers waiver of interest worth Rs 712 crore on total bank loans and extension of the period for repayment by three to five years for loans of Rs 1,296 crore.

Singh also proposed measures like horticulture and fishery to diversify farmers' income. He also granted Rs 2,177 crore for 523 irrigation projects that are on hold due to financial and management constraints. Vidarbha has poor irrigation facilities