The government's decision to pay only Rs 35 per quintal is now Rs 70 per quintal
What you should know
Showing the pressure of resources, the government has reduced the incentive subsidy given to sugarcane farmers by half. The cabinet meeting on June 23 reduced the subsidy amount to Rs 35 per quintal. Earlier sugarcane farmers were getting subsidy of Rs 70 per quintal. The government has reduced the amount of subsidy knowing that the amount of subsidy and support price is low due to the decrease in cultivation.
The Ministry of Agriculture and Livestock Development had proposed Rs 70 per quintal last December. But due to pressure on the economy and lack of resources, no decision could be taken. Agriculture had a budget of 800 crores, it has been decided to distribute the same amount," said Mahanand Joshi, information officer of the ministry. In 2081/82, about 2.4 million quintals of sugarcane were crushed. 75/76 crores at the rate of Rs 35 per quintal. He said that this proposal has been submitted to the Council of Ministers.
'Since there is no money to be given to the sugarcane farmers, they are trying to manage the money. Based on the quantity of production, we have proposed the same to the Cabinet as it will reach only Rs 35 per quintal," he said. "It has been approved by the Cabinet. We will distribute the subsidy amount for 2081/82 in the current financial year. The ministry claims that the main reason for the decrease in subsidy amount is the pressure of resources. Because of the resources, some agricultural budgets have been stopped. Even now, Joshi claims that the subsidy is going to be distributed even if it is a small amount on the initiative of the Ministry of Agriculture.
Last November, the government had fixed the support price of sugarcane at Rs 585 per quintal. This is the price that the sugarcane mill provides to the farmer. Despite an increase of Rs 20 per quintal over last year, no decision was taken regarding the subsidy to be given to the farmers. Although the subsidy was decided on June 23, it was reduced by half.
Farmers are dissatisfied after the government reduced the subsidy amount. They have warned that if the subsidy amount is not increased, they will go on strike. After the sugarcane crushing was completed, the subsidy was decided, but it was decided to reduce it by half. This decision is not in the interest of farmers," said Gopal Yadav, general secretary of the National Agricultural Workers' Union of Nepal. "We oppose the decision to cut the incentive subsidy given to farmers. Government decision will reduce sugarcane production.'
According to a statement issued by the association, the struggle program will be started if the government does not provide at least Rs 70 subsidy. A memorandum has been submitted to the Chief District Officer of 17 districts regarding the subsidy received by sugarcane farmers. However, the association claims that the demands of the farmers have not been addressed. We also submitted a memorandum about the farmer's demand, but it was not addressed. And, it was decided to reduce the subsidy," said General Secretary Yadav, "Now there is no alternative to protest. At first, we will protest from district to district.
President of Nepal Sugarcane Producers Federation Kapil Muni Mainali said that even if the government's decision does not benefit the farmers, there is no other option. Farmers would get Rs 35 per quintal rather than not getting the grant. But if there is no benefit now, the farmers will not cultivate sugarcane," he said, "Every year the cultivation is decreasing, now it will decrease even more."
Looking at the data of the last 5 years, there are many fluctuations in sugarcane cultivation and production. According to Economic Survey 2081/82, in 2077/78 sugarcane was cultivated in 64 thousand 354 hectares. From that, 31 lakh 83 thousand 943 tons of sugarcane was produced. In 2078/79, it decreased to 62 thousand 567 hectares. From that, 31 lakh 59 thousand 634 tons were produced.
In 2079/80, the area under sugarcane cultivation increased moderately. But it is mentioned in the survey that the production has decreased. According to the survey, 31 lakh 30 thousand 109 tons of sugarcane has been produced from 62 thousand 833 hectares. Similarly, in 2080/81, sugarcane cultivation decreased to 55,440 hectares. The production is also limited to 27 lakh 60 thousand 495 tons. In 2081/82, it is mentioned in the survey that there was some improvement in sugarcane cultivation and production. According to the survey, 2.8 million 83 thousand 6 hundred 3 tons were cultivated in 57 thousand 355 hectares that year.
