Sugar mills have cleared 92% of dues owed to sugarcane farmers, says Nepal Govt
As part of its 100-day achievement report, the Nepalese government announced significant progress in settling payments to sugarcane farmers and improving agricultural support infrastructure.
The Nepalese government has officially announced that the country’s sugar mills have successfully cleared approximately 92 percent of the Rs 13.76 billion owed to 68,000 sugarcane farmers for the current fiscal year. According to government spokesperson Sasmit Pokharel, 13 sugar mills have settled the majority of their outstanding dues, with the remainder expected to be cleared before the end of the fiscal year through government-implemented measures.
In addition to settling debts, the government has released Rs 1.52 billion in sugarcane subsidies. Under the current policy, farmers are entitled to Rs 70 per quintal, with funds already transferred to relevant agencies for distribution to the beneficiaries' bank accounts. The government noted that any payments delayed due to technical issues—such as incorrect bank account information or PAN details—will be disbursed promptly following mandatory verification.
Beyond payment updates, the report highlighted significant advancements in agricultural infrastructure. The government has allocated funds to operate agricultural market information systems and establish moisture testing centers. Furthermore, soil testing services are being expanded, and the distribution of soil health cards is underway to help farmers improve crop productivity and land management practices.
Financial support for the agricultural sector has also seen a policy shift. To encourage investment, the government has reduced the risk-sharing requirement for agricultural loans of up to Rs 30 million from 75 percent to 60 percent. This adjustment is intended to ease the credit burden on farmers and facilitate greater investment in farming equipment and modern production techniques.
Efforts to modernize the sector also include the development of a comprehensive national electronic database. Currently, 2.56 million farmers have registered, with 750,000 having already completed the verification process. The government reiterated its commitment to assisting affected families and noted that ongoing studies are being conducted to identify long-term solutions for mitigating human-wildlife conflicts, which remain a priority for the current administration.