Sugarcane Farmers Protest Government's Subsidy Cut

Sugarcane farmers have launched protests in Kathmandu after the government slashed subsidies on sugarcane cultivation by half.

The Cabinet meeting on July 8 reduced the subsidy from Rs 70 per quintal to Rs 35 per quintal, sparking anger among farmers who accused the government of ignoring their demands for support prices.

Farmers, under the banner of the Sugarcane Farmers Struggle Committee, began protests in the capital on Sunday, demanding full payment of the previously promised subsidy. Committee chairperson Ramsahay Yadav said the Ministry of Agriculture and Livestock Development had proposed Rs 70 per quintal last December, but the Cabinet decided to halve it, forcing farmers to hit the streets.

In December, the government had fixed the sugarcane support price at Rs 655 per quintal, of which farmers have already received Rs 585 from sugar mill operators. The government, however, failed to provide the remaining Rs 70 per quintal subsidy, and instead decided to cut it to Rs 35.

Calling the decision a betrayal, Yadav said farmers will not return home without receiving the full subsidy. “This protest is planned for a week. If the government does not respond, we are ready to extend it,” he warned.

Prior to this, sugarcane farmers had submitted memorandums to Chief District Officers of 17 districts. After their demands were ignored, around 600 farmers from the Terai districts, including Sarlahi, Bara, Parsa, Rautahat, Siraha, and Saptari, brought around 600 sugarcane farmers to Maitighar Mandala for the protest.

Agriculture Ministry Secretary Govinda Sharma confirmed the ministry had initially proposed Rs 70 per quintal as a subsidy, but the Cabinet did not approve it at that time and later decided in July to fix it at Rs 35.

He stressed that subsidies are policy-driven and temporary. “There is no policy to provide incentives on any crop indefinitely. The government provides subsidies or incentives only for a certain period, and this decision aligns with that approach,” Sharma said.