MAHOTTARI:- The government has begun preparations to release sugarcane subsidies to farmers within the current fiscal year, breaking the practice of previous years when payments were made several months after the completion of the crushing season.
In previous years, the Department of Agriculture used to disburse the subsidy around 10 months after the crushing season, usually in October or November.
This year, however, the subsidy funds have already reached the District Treasury and Controller Office, Mahottari, and preparations are underway to transfer the amount directly to farmers’ bank accounts.
The timely release of the subsidy has raised hopes among sugarcane farmers, who say it reflects a positive change in the government’s approach.
According to Bal Krishna Adhikari, Chief of District Treasury, 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 District Sugarcane Subsidy Payment Committee had recommended the subsidy on April 23 based on the purchase of 2,867,987 quintals of sugarcane by Everest Sugar Mills, located in Ramnagar, Mahottari, and Siddhivinayak Sugar Mills in Gaushala-12.
According to the details submitted by the two sugar mills, Everest Sugar purchased 2,853,179 quintals of sugarcane from 11,818 farmers during the current crushing season.
Likewise, Siddhivinayak Sugar Mills purchased 14,808 quintals from 214 farmers.
Accountant Suman Raut at the Treasury and Controller Office, Mahottari, said the subsidy funds have 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 12,032 farmers by July 9.
Farmers had earlier expressed dissatisfaction after the previous government reduced the sugarcane subsidy from Rs. 70 per quintal to Rs. 35. Following protests from the district level to Kathmandu, the previous government reinstated the subsidy to Rs. 70 per quintal, according to Mahashankar Thing, Central Committee member of the Sugarcane Producers’ Federation.
Thing said it was encouraging that the present government had implemented the agreement reached between the federation and the previous government to restore the subsidy to Rs. 70 per quintal and release the payment within the current 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 willingness has raised expectations that it will also revise the support price for sugarcane in line with farmers’ demands. We expect the government to scientifically assess the imbalance between market prices and production costs and work towards a long-term solution to the problems facing sugarcane farmers.”
However, farmers remain dissatisfied with the support price fixed 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 set the price at only Rs. 620 per quintal.