Kathmandu, Nov 16: The government has begun preparations to set the minimum support price of sugarcane for this year 2082 BS. According to the Ministry of Agriculture and Livestock Development, a survey has been initiated in eight districts, including Sunsari, Morang, and Rautahat, to conduct a field study before determining the price.
Information Officer of the Ministry, Mahananda Joshi, stated that teams have been deployed to collect data on the cost of sugarcane production and the cost of cultivation per hectare, as well as the actual expenses incurred by farmers.
Based on the data collected by these teams, the government will determine the purchase price by calculating the cost incurred by farmers per quintal of sugarcane, adding a profit margin, and including the average transportation cost required to deliver the sugarcane to the nearest mills. The price of every commodity is usually set on the basis of production cost. Once the government sets the purchase price, sugar mills are required to buy sugarcane at that rate.
After completing the survey in coordination with local levels, the Department of Agriculture will recommend the determined price to the Ministry of Agriculture and Livestock Development. The ministry will then forward the recommendation to the Ministry of Industry, and the final price will be set with the consent of the Ministry of Finance, Joshi added.
The government has a provision to directly deposit subsidy amounts into farmers’ bank accounts based on their production. Last year, farmers received a subsidy of Rs. 35 per quintal. About 2.16 million quintals of sugarcane were produced last year. According to the ministry, sugarcane is currently cultivated on about 300,000 hectares nationwide, with around 65,000 farmers involved.
To prevent the influence of middlemen in subsidy distribution and ensure that genuine farmers receive the support, sugarcane farmers must register with local authorities. Subsidies are then distributed on the basis of this registration. #nepal #sugarcane
