Sugarcane farmers to protest against subsidy cuts

By Rabindra Upreti,Bardibas, July 30: Farmers have announced a protest against the government's decision to reduce the subsidy by half on sugarcane provided to them for long from the current fiscal year.

The government has halved the subsidy of Rs. 70 per quintal of sugarcane to Rs. 35, citing budget constraints and inability to raise resources.

A formal meeting of the chairmen and farmers of the Sugarcane Producers Associations of Mahottari, Sarlahi, Bara and Sunsari districts held in Harion on Monday evening decided to hold a protest in three phases against the government decision regarding the subsidy.

Almost six months ago, the Ministry of Agriculture and Livestock Development had sent a proposal to the Council of Ministers, setting a subsidy of Rs. 70 per quintal to sugarcane farmers, similar to the one given last year. 

However, the Council of Ministers did not approve the proposal and there was no budget allocation in the budget statement presented on May 29 for the current fiscal year.

As the budget did not mention the issue of sugarcane subsidy, a delegation of sugarcane farmers met the Minister for Agriculture and Livestock Development and Minister for Finance and requested them to provide the subsidy.

Again, on July 6, 2025, the ministry sent a proposal to the Council of Ministers to reduce the subsidy to Rs. 35, and the reduced amount was approved by the Council of Ministers on July 14.

In the first phase, it has been decided to submit a memorandum to the Prime Minister through the District Administration Offices of all the districts where sugar factories are located on August 3, 2025. 

If the memorandum is not heard, it has been decided to burn tires at the main gates of sugar mills across the country on August 5 in protest and in the third phase, the protest will be focused on the Maitighar Mandala in Kathmandu from August 22.

According to Mahashankar Thing, a member of the Federation of Sugarcane Producers’ Association, the reduction of subsidy on sugarcane has further affected the drought-affected farmers

Thing said, "Farmers are confused and angry. We are preparing to take the agitation nationwide if the subsidy received is not continued."

Earlier, the Federation had been demanding that the current price of sugarcane to be paid by industrialists be increased from Rs. 565 to Rs. 750 per quintal. 

However, the government, without involving the farmers’ representatives, increased the price by only Rs. 20 per quintal to Rs. 585 at the behest of the industrialists, and the farmers are already dissatisfied.

Adding Rs. 70 as subsidy, the sugarcane rate in the last fiscal year 2024/25 reached only Rs. 655 per quintal. Sugarcane farmers are angry over the decision to provide only Rs. 35 as subsidy in the current fiscal year 2025/26 and reduce the price of sugarcane to Rs. 620 per quintal.

According to Naresh Kushwaha, President of the Sugarcane Producers' Association, Mahottari, even though they did not get a fair price for sugarcane, the government subsidy had given sugarcane farmers a small relief.  This subsidy had helped maintain the farmers' confidence in sugarcane farming, he said.

He said, "If the price is not increased and the subsidy reduced, there is no option but to abandon sugarcane farming if the movement is not successful."

According to the Treasury Control Office, Mahottari, Everest Sugar Mill in Ramnagar has crushed 3.14 million quintals of sugarcane this year.