Kathmandu, August 25
The government has begun preparations to set the minimum support price for sugarcane for the current year with the aim of ensuring fair prices for sugarcane farmers.
The Department of Agriculture has started a field study in 11 Tarai districts where sugarcane farming is widespread.
A department team is collecting data on farmers’ actual production costs and other expenses in Sunsari, Morang, Siraha, Dhanusha, Mahottari, Sarlahi, Rautahat, Nawalparasi, Bardiya, Kailali and Kanchanpur.
Department Director General Prakash Kumar Sanjel said a new support price would be proposed based on the actual data collected through the survey.
He said the ongoing study would also closely assess changes in transportation, production and other miscellaneous costs compared with previous years.
After completing the study report, the department will submit it to the Ministry of Agriculture, Forests and Environment for further discussion and consensus, Sanjel said.
The Cabinet will then make the final decision on the purchase price of sugarcane and the amount of subsidy the government will provide to farmers, he added.
The government sets minimum support prices for crops such as sugarcane and paddy every year to protect farmers from significant losses when agricultural commodity prices decline in the market and to safeguard their investments.
Last year, the government set the purchase price of sugarcane at Rs 620 per quintal and provided farmers with a subsidy of Rs 70 per quintal.
