Despite being a mainstay of the national economy, agriculture in Nepal has not grown as expected. The contribution of agriculture to the gross domestic product (GDP) hovers around 39 per cent. Farmers in the country have been facing problems associated with unavailability of irrigation facility, improved seeds and fertilizers, manpower, and better market access. They also do not get adequate subsidies and other incentives. With such hitches, they are not so motivated to expand and commercialise their farming. Because of her unrivalled topographical and climatic diversity, the country holds immense potentials for boosting the agriculture sector. Nepal can produce a variety of cereal as well as cash crops to become self-reliant in food. But the country is bound to import a lot of foodstuffs as agriculture has not been a priority in real sense.
With its suitable climate and arable land, the southern region of the country is quite favourable for sugarcane farming. Sugarcane is one of the most profitable cash crops in the country. As there has been a steady rise in the demand for sugar in Nepal, the sugarcane farming could be a lucrative option for farmers. Several sugar mills are also in operation in the Terai. These mills produce around 140,000 metric tonnes of sugar every year while the annual demand for this item within the country has increased to about 400,000 metric tonnes. Notwithstanding such prospects, the sugarcane farming has yet to flourish due to lack of incentives for farmers. Having ranked 41st in sugarcane production worldwide, the country produces only about 2.93 million tons annually. In terms of harvested area and sugarcane yield, the country is in the 35th and 67th positions, respectively. Many sugarcane farmers in the Terai have begun opting for other crops or occupations because they have failed to get good price of their products.
Another major issue associated with the sugarcane farming is that there has been a tendency among the mill operators not to clear even their outstanding dues. The Indira Sugar Mill, Lumbini Sugar Mill, Annapurna Sugar Mill and Sri Ram Sugar Mill have yet to pay some Rs. 900 million to the farmers. Many farmers have even resorted to street protests against the sugar mill operators to pile pressure on them to clear their dues. Recently, the farmers staged protests in Kathmandu once again, demanding that their payment be made at the earliest. About one year back, the government had brought the farmers and the mill operators to a negotiation table to resolve the problem. The mill operators had agreed to clear the dues of the farmers on an instalment basis.
Since the mill operators have failed to keep their promises time and again, the federal government has now taken a tougher measure to deal with the protracted problem. According to the news carried by this daily on Wednesday, the meeting of the four ministers chaired by Minister for Home Affairs Ram Bahadur Thapa instructed the concerned local administration to take necessary action against the sugar mill operators who have failed to clear dues of farmers. There should a mechanism in place to ensure that the farmers get their payment in time. The government should also listen to the grievances of the sugar mills that have to compete with many foreign sugar producers.