Kathmandu, July 3: The government has begun preparations to distribute sugarcane subsidies to farmers within the current fiscal year, ending the long-standing practice of releasing payments several months after the crushing season.
In previous years, the Department of Agriculture typically disbursed subsidies around 10 months after the crushing season, usually in October or November. This year, however, the subsidy funds have already been transferred to the District Treasury and Controller Office in Mahottari, and preparations are underway to deposit the amount directly into farmers’ bank accounts.
The timely release of the subsidy has raised hopes among sugarcane farmers, who see it as a positive shift in the government’s approach.
According to Bal Krishna Adhikari, Chief of the District Treasury and Controller Office, Mahottari, farmers received a subsidy of only Rs. 35 per quintal last fiscal year. Based on the recommendation of the District Sugarcane Subsidy Payment Committee, the subsidy has been restored to Rs. 70 per quintal this year. The office has received Rs. 200.76 million for distribution.
The committee made its recommendation on April 23 based on the purchase of 2,867,987 quintals of sugarcane by Everest Sugar Mills in Ramnagar, Mahottari, and Siddhivinayak Sugar Mills in Gaushala-12.
According to data submitted by the mills, Everest Sugar purchased 2,853,179 quintals of sugarcane from 11,818 farmers during the current crushing season, while Siddhivinayak Sugar Mills purchased 14,808 quintals from 214 farmers.
Accountant Suman Raut at the District Treasury and Controller Office said the subsidy funds had already been received from the Department of Agriculture. Following a decision by the District Sugarcane Subsidy Payment Committee, the office plans to deposit the subsidy into the bank accounts of all 12,032 eligible farmers by July 9.
Farmers had strongly opposed the previous reduction of the subsidy from Rs. 70 to Rs. 35 per quintal. Following protests from the district level to Kathmandu, the previous government agreed to restore the subsidy to Rs. 70 per quintal, according to Mahashankar Thing, Central Committee member of the Sugarcane Producers’ Federation.
Thing welcomed the current government’s decision to implement the earlier agreement by restoring the subsidy and ensuring payment within the same crushing season and fiscal year.
“Timely payment and the restoration of the Rs. 70 subsidy per quintal are positive steps,” he said. “The government’s commitment has raised expectations that it will also revise the support price for sugarcane in line with farmers’ demands. We hope it will scientifically assess the gap between market prices and production costs and introduce a long-term solution to the challenges faced by sugarcane farmers.”
Despite welcoming the subsidy payment, farmers remain dissatisfied with the support price for the current crushing season. While they had demanded a minimum support price of Rs. 750 per quintal for the 2025/26 crushing season, the government fixed it at Rs. 620 per quintal. #nepal
