Government Releases Subsidy for Sugarcane Farmers after Protests

The government has released funds to pay sugarcane farmers the pending subsidy for sugarcane delivered last December, following recent protests in Kathmandu over a sharp cut in incentive rates.

According to the state-run national news agency RSS, the Ministry of Finance has disbursed Rs 754.9 million, which will be credited to farmers’ bank accounts through District Treasury Controller’s Offices by Thursday.

The dispute stems from the government’s decision on July 8 to reduce the subsidy from Rs 70 per quintal to Rs 35 per quintal. Citing financial constraints, the government had even delayed the release of the reduced amount.

The government had set the sugarcane support price at Rs 655 per quintal in December, of which farmers received Rs 585 from sugar mills. The remaining Rs 70 per quintal was promised as a government incentive, but the amount was later halved and the disbursement put on hold.

Angered by the cut and delays in payment, farmers under the Sugarcane Farmers Struggle Committee began protests in Kathmandu earlier this week, demanding the full subsidy. Nearly 600 farmers from Terai districts, including Sarlahi, Bara, Parsa, Rautahat, Siraha, and Saptari, joined the recent demonstrations at Maitighar Mandala.

In response, the Ministry of Agriculture and Livestock Development held talks with farmer representatives at Singha Durbar on Tuesday and formed a four-member negotiation team led by Lalankumar Singh, Deputy Director General at the Department of Agriculture.

Officials emphasized that subsidies are temporary policy measures, not permanent entitlements. “There is no policy to provide incentives on any crop indefinitely,” Agriculture Ministry Secretary Govinda Sharma said earlier, noting that the recent decision reflects this principle.