India is the 3rd largest producer of cotton in the World. Maharashtra ranks second in India in the production of cotton. About 3 million farmers are engaged in cotton cultivation in the state mostly in the backward region of Marathwada and Vidharbha. Till 1971 the cotton trade in the state was in private hands and farmers were not able to realise appropriate prices for their produce though the terminal markets were commanding higher prices. In order to bring benefits of higher prices to the farmers, the Government of Maharashtra launched the Cotton Monopoly Scheme in 1971 by enacting The Maharashtra Raw Cotton (Procurement , Processing & Marketing) Act 1971 with following main objectives :
1) To get fair share in the prices to the cultivators.
2) To ensure supply of unadulterated graded cotton at reasonable prices to the consumers.
