Agitating sugarcane farmers stage protest in Kathmandu

Sugarcane farmers from across the country today staged protest at Maitigar in Kathmandu against the delayed payment of outstanding dues from sugar mills.
Organising a protest, they said that they were compelled to start the protests as sugar mills were reluctant to issue almost Rs 1.5 billion pending dues to farmers. Farmers had been staging protests in their respective districts against the delayed payment for their produce has shifted their protest movement to the Capital as the government was reluctant to address their concerns. As their concerns remain unaddressed, farmers not only staged a protest in Maitighar today but also organised a sit-in programme in front of Singha Durbar to pressurise the government.
“The crushing of new sugarcane is soon to start,” president of Nepal Sugarcane Producers Federation Kapil Muni Mainali said, adding that sugar mills have, however, not cleared the payment for last year’s cane to farmers. “We were forced to launch protests in Kathmandu as the government is doing nothing to ensure that farmers get their payments on time.”
Among the various sugar mills, Annapurna Sugar Mill has yet to issue payment worth Rs 50 million, whereas Sri Ram Sugar Mill has not paid almost Rs 420 million since the last three years, they claimed, adding that the Sarlahi-based Maha Laxmi Sugar Mill too has been delaying payments worth Rs 210 million. “Likewise, three Nawalparasi-based sugar factories – Indira Sugar Mill, Bagmati Sugar Mill and Lumbini Sugar Mill – are yet to clear Rs 210 million to cane farmers.”
Mainali also said that Annapurna Sugar Mill, Shree Ram Sugar Mill, Mahalaxmi Sugar Mill and three other sugar mills in Nawalparasi have shut down their operations saying that they will not be able to operate the factories, if they make payment to the farmers.
The sugar mill owners have not paid them since 2013, though they have entered into an agreement, he said, adding that the farmers took to the street demanding the immediate payment to them despite cold and chilly weather. “Factory owners had promised farmers that they will clear their dues in installments but farmers said they cannot trust the mill owners.”
The government has fixed the purchase price of sugarcane at Rs 563.56 per quintal but the sugar mill owners have paid Rs 500 to the farmers, they claim, adding that the mill owners have not been releasing payments to farmers though they have been selling sugar and the demand for Nepali sugar is also increasing in the market.
However, president of Sugar Producers Association Sashi Kant Agrawal said that the domestic sugar mills have not been able to sell their product following huge imports from India and Pakistan two years ago. “The sugar import from India has not stopped yet,” he said, adding that cheaper sugar is entering the country – both legally and illegally – as the Indian government has provided a subsidy of Rs 18 per kg in the export. “Unless the import stops, the sugar producers will not be able to pay farmers due to price difference on imported sugar and domestic product.”
The factories have been running in losses – and are not able to make payment – thus the government needs to prepare a payment schedule for farmers and make payments accordingly to resolve the sugarcane farmer issue, added the president of the association – which claims that there are around 15,000 farmers engaged in commercial sugarcane farming in Sarlahi alone including 100,000 farmers in 15 districts – Agrawal.
Meanwhile, Ministry of Industry, Commerce and Supplies has sent a letter to the Home Ministry today to take action against sugar producers, who have failed to pay farmers.