Submit your Article

The government has released a total amount of Rs 754.93 million to provide subsidies for sugarcane farmers. 

The Ministry of Finance (MoF) has released the amount which will be transferred to the beneficiaries' bank account through the district-based Treasury and Financial Comptroller offices, reported the Ministry of Agriculture and Livestock Development (MoALD).

Although the Cabinet meeting had earlier decided to provide a subsidy of Rs 35 per quintal to sugarcane farmers, the MoF delayed the disbursement citing technical issues. 

The delay prompted the disgruntled sugarcane farmers to stage Kathmandu-centric protest programs. Also, the government's decision to halve the subsidy-previously Rs 70 per quintal-further fueled their decision to take to the street.

Although MoALD had proposed continuing the same amount this year as well, the Cabinet meeting decided to provide Rs 35 per quintal taking into account the country's current economic condition and needs.

Meanwhile, representatives of the MoALD and Ministry of Industry, Commerce and Supplies and protesting sugarcane farmers held a meetibg on Tuesday at Singha Durbar. 

Lalan Kumar Singh, Deputy Director General of Department of Agriculture, and Lal Kumar Shrestha and Maniratna Aryal, Under-Secretaries of the MoALD among others represented the government side while Shyam Babu Raya led the sugarcane farmers in the talks. 

It may be noted that Minister of Agriculture and Livestock Development Ramnath Adhikari on last Tuesday had formed a four-member team in a bid to address the demands of protesting sugarcane farmers.

The price of gold has increased by Rs 300 per tola in the domestic market on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 199, 000 per tola today. 

The price of silver, however, has dropped by Rs 15 and is being traded at Rs 2, 345 per tola today.

Preparations for the Power Development Agreement (PDA) of the West Seti Hydropower Project have officially begun. A negotiation committee led by Investment Board Nepal (IBN) CEO Sushil Bhatta has been formed to draft the PDA. The decision was made during the 65th meeting of the board chaired by Prime Minister KP Sharma Oli. The committee has been tasked with holding discussions with the project developer on the PDA draft, financial structure, and related matters, and then submitting recommendations to the board.

The committee includes joint secretaries from the Prime Minister’s Office, Ministry of Finance, Ministry of Energy, and Ministry of Law; the Director General of the Department of Electricity Development; IBN’s technical joint secretary; the Deputy Managing Director of the Nepal Electricity Authority; and a senior divisional engineer (hydropower) of the board, who will serve as the committee’s member secretary.

According to IBN spokesperson Pradyumna Prasad Upadhyay, the committee will work to resolve disagreements over the project’s financial structure and finalize the PDA. The main sticking point between Nepal and India’s National Hydroelectric Power Corporation (NHPC) is the provision of 21 percent free electricity to Nepal. While the board’s agreement with the developer includes this condition, NHPC has expressed reservations, citing high costs for a reservoir-based project.

In Sept 2022, IBN signed a pact with NHPC to develop the 750 MW West Seti and the 450 MW Seti River-6 projects. The agreement specified that Nepal would receive 262 MW—21.9 percent of the total installed capacity—free of cost. NHPC has since completed and submitted its Detailed Project Report (DPR), which proposes increasing West Seti’s capacity to 800 MW and developing it as a reservoir-based project, pushing estimated costs to nearly Rs 200bn with a construction timeline of about six years.

Technical studies show that while a reservoir-based model offers higher storage capacity, it will flood over 3,300 hectares of land, displacing communities in Baitadi and Bajhang districts. The commission’s study committee earlier highlighted the high resettlement and rehabilitation costs associated with this model. Despite these challenges, both sides are continuing discussions to resolve outstanding issues, including the share of free electricity and the sale market for the power generated. Once the West Seti PDA is finalized, IBN plans to move ahead with the Seti River-6 project.

Sugarcane farmers have staged a protest in Kathmandu, expressing bitter grief after the government slashed subsidies for sugarcane farming. Farmers from across the country gathered at Maitighar Mandala, carrying sugarcane stalks in a sit-in protest.

The government had been providing a subsidy of Rs 70 per quintal to farmers. However, it recently reduced the amount by 50 percent—to Rs 35 per quintal. Instead of adjusting the subsidy in line with inflation, the government cut it, said Naresh Singh Kushwaha, president of the Sugarcane Producers Farmers Association, Mahottari.

The Ministry of Agriculture and Livestock Development had earlier submitted a proposal to the Council of Ministers to continue providing the Rs 70 subsidy, the same as last year. But on July 16, the Council of Ministers decided to provide only Rs 35 per quintal. Ministry sources said that only the Cabinet has the authority to revise this decision and restore the subsidy to Rs 70 as demanded by the farmers.

The government cited budget shortages as the reason for halving the subsidy. In fiscal year 2024/25, 21m quintals of sugarcane were purchased from farmers by 13 sugar mills across the country. Farmers should have received Rs 15.15m in subsidies at the rate of Rs 70 per quintal. But since they did not, sugarcane farmers have launched a Kathmandu-centered movement, said Chairperson Kushwaha.

Sugarcane farmers from the Tarai-Madhes region have traveled from their villages to Kathmandu to lead the protest and demonstration. Rampujan Mahato, a farmer from Mahottari, said they will not leave the streets until the government agrees to provide the Rs 70 per quintal subsidy.

Mahashankar Thing, central member of the Nepal Sugarcane Producers Federation, said that after their district-level protests were ignored, farmers have come to Kathmandu for a decisive movement. “We will hold a Kathmandu-centered movement for seven days. During this time, we will surround the Prime Minister’s residence in Baluwatar, Parliament House in Baneshwor, Singha Durbar, and the President’s residence in Maharajgunj with our demands. If these actions do not address our concerns, we will launch an even tougher struggle,” he said.

Under the leadership of the Sugarcane Producers Federation, farmers from Tarai-Madhes have brought sugarcane stalks to Kathmandu. On Sunday, they staged demonstrations from the cowshed area to Maitighar Mandala and Baneshwor Chowk, chanting slogans.

According to Shyambabu Ray, coordinator of the Central Sugarcane Struggle Committee, sugar industries have already paid farmers Rs 585 per quintal. However, the government has failed to deliver the Rs 70 per quintal subsidy. “Last year, the government and industrialists fixed the sugarcane rate without involving farmers’ representatives. Cutting the subsidy now is an insult to our hard work. Industrialists are making sugar from cane we sold on credit, while the government has denied us the support it promised. This is injustice to farmers,” said Ray.

Agriculture Minister Ram Nath Adhikari has also discussed the matter with Chief Secretary Ek Narayan Aryal regarding the farmers’ blockade, according to Ray. During a meeting with the protesting farmers, Minister Adhikari said the issue would be tabled at the next Cabinet meeting. He proposed forming a negotiation committee to discuss the matter further, and the farmers expressed their willingness to seek a solution through dialogue.