Milk and Sugarcane Farmers Await Rs 2.57 Billion Payment from Government

KATHMANDU: Milk and sugarcane producing farmers across Nepal are still waiting for the government to pay more than Rs 2.57 billion owed to them for their sold products. According to the Ministry of Agriculture and Livestock Development (MoALD), the overdue payments include over Rs 1.27 billion owed to milk producers and Rs 1.30 billion owed to sugarcane farmers in subsidies.

During a press meet on Sunday, Agriculture Minister Ram Nath Adhikari addressed the issue, acknowledging the government’s outstanding debt to the farmers. He stated that the government has already paid Rs 335.70 million in dues to milk producers but reassured that the remaining amounts owed to both milk and sugarcane farmers will be cleared before Dashain.

Minister Adhikari emphasized the government’s commitment to resolving the payment delays, acknowledging the importance of timely financial support for farmers. “We understand the difficulties faced by our farmers, and I assure you that we are working diligently to ensure that all outstanding payments are made before Dashain,” he said.

Additionally, Adhikari revealed plans to disclose the names of individuals who have been found misusing agricultural grants provided by the government. The MoALD has received numerous complaints regarding the misuse of these funds, which were intended to enhance agricultural productivity across various segments. “We will take strict action against those who have misused the grants, as it is essential to ensure that government support reaches the farmers who truly need it,” Adhikari stated.

The minister also reiterated the government’s plan to categorize farmers in order to streamline the distribution of state-provided facilities. Despite previous announcements about distributing farmers’ identity cards based on categorization, this initiative has yet to be fully implemented. However, Adhikari confirmed that the MoALD is actively working on it and plans to make the agriculture grant facilities more effective by connecting them with enlisted farmers.

As part of the Farmers Enlisting Program launched in 2020, the MoALD has so far enlisted over 1.8 million farmers, with a goal to enlist at least 1.2 million more in the current fiscal year. “We are committed to making the grant facilities more efficient and ensuring they contribute to enhancing agricultural productivity,” said Adhikari.

In other developments, the government has projected an increase in the yield of key food grains, including paddy, corn, and wheat, for the current fiscal year. According to MoALD records, Nepal produced over 10.96 million tons of these cereals in the fiscal year 2023/24, and this is expected to rise to over 11.04 million tons in the current fiscal year.

The projected increase in crop yields is as follows: paddy is expected to yield 5.735 million tons, up from 5.724 million tons; corn production is forecasted to reach 3.095 million tons, up from 3.089 million tons; and wheat production is projected to reach 2.215 million tons, up from 2.155 million tons.

The projected boost in cereal production is seen as a positive sign for Nepal’s agricultural sector, which remains a vital part of the country’s economy. However, ensuring that farmers receive the financial support they are entitled to remains crucial to sustaining this growth and improving overall productivity.

As the government works to address the outstanding payments to farmers, there is hope that these measures will contribute to greater financial stability and support for those working in agriculture, ensuring they have the resources they need to continue contributing to Nepal’s food security and economic growth.