The new sugarcane crop has sprouted in the fields, but farmers are still waiting for the subsidy payment for the previous harvest. According to Shyambabu Ray, coordinator of the Central Sugarcane Struggle Committee, the government has yet to address the demands of sugarcane farmers who staged a protest in Kathmandu a month ago. The aggrieved farmers complain that even the government led by Sushila Karki has shown little seriousness in responding to their concerns.

Naresh Singh Kushwaha, a farmer leader from Mahottari, said that the delay in receiving the subsidy has spoiled the Dashain, Tihar, and Chhath festivals for many farmers. Before Dashain, the protesting farmers had met with the newly appointed Minister for Agriculture and Livestock Development, Madan Pariyar, urging him to release the pending subsidy for last year’s sugarcane. Although Minister Pariyar had assured them that the payment would be made soon, Ray told ApEx that the government has not released the funds even after the major festivals have passed.

“Last year’s sugarcane subsidy remains unpaid. Even though the new government has promised to release it, there’s no sign of when that will actually happen,” Ray said.

According to the committee, sugarcane farmers are still owed Rs 755m in subsidies for the fiscal year 2024/25. Last year, a total of 21.572m quintals of sugarcane were sold to 13 sugar mills across the country. The government had announced a subsidy of Rs 70 per quintal for sugarcane cultivation, meaning farmers should have received Rs 1.515bn in total.

However, the then KP Sharma Oli government reduced the subsidy by half, citing a budget deficit, and decided to provide only Rs 35 per quintal. In response, farmers launched a Kathmandu-centric protest. Following the agitation, the Ministry of Finance released Rs 754m—covering the reduced amount—but farmers continue to demand the full Rs 70 per quintal promised earlier.

Mahashankar Thing, a central member of the Sugarcane Producers Federation, said the government has not shown any seriousness toward their demands. He noted that the government has been allocating funds for sugarcane subsidies under the national budget since 2008.

“We are not asking for handouts,” Thing said. “We are only demanding the rightful value of our labor, in exchange for the VAT that the government has already exempted on agricultural products.”