Sugarcane farmers threaten highway blockade over pending subsidy, MSP

The Nepal Sugarcane Producer Federation has issued an ultimatum to the government, demanding the release of pending subsidies and the setting of the minimum support price (MSP) as the new sugarcane crushing season begins.

For the fiscal year 2024/25, the government had announced a subsidy of NRs 70 per quintal of sugarcane. Citing financial constraints, it cut the subsidy to NRs 35 per quintal and released only NRs 754.93 million of the initially promised NRs 1.6 billion. 

In a memorandum submitted to the government, the federation demanded the immediate release of the remaining amount at the rate of NRs 35 per quintal.

The farmers are also calling for an increase in the MSP from the current NRs 585 per quintal to NRs 750 per quintal, to be finalised through a tripartite agreement between the farmers, the government, and sugar mills.

The federation warns in the memorandum, if the government does not meet these demands by November 29, the federation will hold protests on Mahendra Highway in Sarlahi’s Hariwon from November 30 for one hour. From December 1, protesters plan to block the highway indefinitely until their demands are addressed.

Umesh Chandra Yadav, spokesperson for the federation, said the government’s delay has forced farmers to sell sugarcane at old prices or on credit, putting them under severe financial strain. He reiterated that the subsidy is not a handout, but money owed to farmers from the VAT collected on sugar sales.

This is not the first protest over these issues. Sugarcane farmers demonstrated at Maitighar Mandala in Kathmandu on August 24 and had warned of a return to the streets on September 10. However, youth-led protests in September forced them to postpone their plans.