Sugarcane farmers across Nepal have once again been driven to protest following the government’s decision to drastically reduce the subsidy they have been receiving for more than a decade. The move comes amid ongoing grievances over delayed payments and unmet financial commitments by both the government and sugar mills.
Longstanding Subsidy Slashed
For the past 15 years, the government has provided subsidies to sugarcane producers to support their agricultural efforts. However, no allocation was made in the budget for fiscal year 2025/26, and to the farmers’ dismay, the subsidy for the previous year’s harvest has been halved from Rs 70 to Rs 35 per quintal. The government cited a shortage of financial resources as the reason for this reduction.
Mounting Frustration and Protest Plans
Angered by the abrupt cut and the lack of support in the new budget, sugarcane producers convened last week and unanimously decided to launch a three-phase nationwide protest. Farmers from Mahottari, Sarlahi, Bara, and Sunsari districts will spearhead the movement, which is expected to grow in scale.
The protest plan includes:
- August 5: Demonstrations in front of sugar mills across the country
- August 22: A major protest rally at Maitighar Mandala in Kathmandu
Unpaid Dues and Government Apathy
According to Kapil Muni Mainali, President of the Nepal Sugarcane Producers’ Association, the government still owes substantial dues to farmers. In Sarlahi district alone, the unpaid subsidy amount is estimated at Rs 373.99 million.
Mainali warned that the continued neglect and reduction in support would drive many farmers to abandon sugarcane cultivation, jeopardizing their livelihoods and the industry as a whole. “The government’s decision is not just disappointing; it is dangerous for the future of sugarcane farming in Nepal,” he stated.
A History of Protests
This is not the first time sugarcane farmers have taken to the streets. In previous years, they have repeatedly been forced to protest to receive payments from sugar mills or claim subsidies announced by the government. Persistent issues include:
- Delays in setting floor prices
- Minimal increases in purchase rates
- Irregular subsidy disbursements
Despite repeated assurances, systemic issues remain unresolved.
What Lies Ahead
With mounting pressure from grassroots farmers and growing media attention, the government may face intensified scrutiny in the coming weeks. The protests are expected to continue unless the authorities respond with a clear plan for disbursing pending subsidies and reinstating adequate support mechanisms for sugarcane growers.
The farmers are calling for immediate intervention, urging the government to reconsider its budget decisions, release unpaid dues, and establish fair and timely pricing and subsidy policies for sugarcane cultivation.
