The government is preparing to fix the purchase price of sugarcane for this year. A field survey has begun in eight districts, including Sunsari, Morang, and Rautahat, to determine the pricing.
According to Mahananda Joshi, Information Officer at the Ministry of Agriculture and Livestock Development, a team has been deployed to collect data on the cost of sugarcane production, per-hectare production expenses, and actual expenditure incurred by farmers.
Based on the data collected, the government will determine the purchase price by calculating the cost incurred by farmers to produce one quintal of sugarcane, adding a reasonable profit margin, and including the average transportation cost to deliver the crop to the mills. The purchase price of sugarcane is fixed only after the government sets the rate, and mills are required to buy sugarcane at the government-declared price.
Once the survey is completed in coordination with local governments, the Department of Agriculture will recommend a price to the Ministry of Agriculture and Livestock Development. The recommendation will then be forwarded to the Ministry of Industry, and finally, the Ministry of Finance will approve and finalize the purchase price, Joshi said.
The government has a provision to transfer subsidies directly into the bank accounts of sugarcane farmers based on their production. Last year, the government provided a subsidy of Rs 35 per quintal. A total of 21.6 million quintals of sugarcane were produced last year. At present, sugarcane cultivation covers around 300,000 hectares nationwide, and nearly 65,000 farmers are engaged in its production, according to the ministry.
To ensure subsidies reach genuine farmers and to prevent middlemen from interfering, sugarcane farmers must be registered at the local level, and subsidies are provided based on that registration.
