KATHMANDU: The Ministry of Agriculture and Livestock Development is preparing to recommend a support price of Rs 544 for sugarcane in the current fiscal year.
The ministry is preparing to recommend the Ministry of Industry, Commerce, and Supplies to fix the support price at Rs 544 per quintal by adding a cash subsidy of Rs 65.28 per quintal.
Compared to last year, the Ministry of Agriculture is preparing to increase the recommendation by Rs 8 per quintal this year. Last year, the government had fixed the support price at Rs 536 per quintal, including cash subsidy for sugarcane.
The ministry has informed that it is going to recommend to increase the support price by Rs 8 from last year by adding the cost and transportation of the farmers.
Meanwhile, the Federation of Sugarcane Producers of Nepal has demanded to set support price of sugarcane at Rs 620 including cash subsidy. Otherwise, the farmers will stop cultivating sugarcane, which threatens the federation.
The federation has stated that the price of sugarcane should be fixed at Rs 620 per quintal if the government is to encourage sugarcane farmers to continue sugarcane cultivation.
Sugarcane production is also declining every year. As per the federation three years back, the production of sugarcane was 27.6 million quintals. However, it has been estimated that only 13 million quintals of sugarcane will be produced this year.
As per the federation currently, there are around 72,000 sugarcane farmers in the country. And sugar mills have been shut down without paying the farmers. However, the farmers have not received payment for sugarcane.
According to the federation, Rs 170 million is due to Annapurna Sugar Mill, Rs 240 million to Shri Ram Sugar Mill, Rs 100 million to Lumbini Sugar Mill, and Rs 70 million to Indira Mill.