The economic blockade that was in place in Manipur was called off on Tuesday after the State Government gave written assurance to upgrade Sadar Hills as a full fledged district after district re-organisation committee submitted its report.

The agreement came after mid night and no decision has been made yet on the counter blockade imposed by the United Naga Council (UNC) who were opposing the upgrade.

UNC said it will not lift the blockade as of now. A meeting has been called on Tuesday afternoon to discuss the ramifications of the MoU signed between the government and SDDC.

National highway 39, national highway 53 and national highway 150 continue to remain blocked. UNC has been opposing the move as this will frustrate their ultimate goal for a Nagal homeland or a Nagalim.

The 92-day old economic blockade had crippled the state and essential commodities were short supply for the last three months. An LPG cylinder costs over Rs 2,000 while petrol has touched Rs 140 per litre in Manipur. Black marketing had also become rampant.

The crisis began on August 1 when the United Naga Committee opposed the Kuki demand to turn Sadar Hills into a full-fledged district.