3.4 Problems and Challenges of Sugarcane Farmers
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3.4 Problems and Challenges of Sugarcane Farmers Background technical knowledge on farming and lack ue to the geography, soil qual- of consultation mechanisms, agricultural Dity, irrigation accessibility, loans, lack of access in policy re/forma- and favorable weather, the lower Terai tion agendas and process, untimely and region is the hub for Nepal’s agricultur- irregular payments from the sugar mills, al production. The production of various difficulties in receiving governmental cash and food crops in the region, is also subsidy on time, and inability to increase Nepal’s agricultural backbone. sugarcane yield. According to the Prospect and The sugarcane farmers from the Challanges of Sugarcane Development plains have organized two protests in in Nepal: Production, Market and Policy Kathmandu within a year and the main (Amita Pandey and Sudip Devkota-2020) demand was that they be paid the money Nepali sugarcane production contributes that sugar mills owed them. The farm- less than one percent to the production of ers had organized the protest in Decem- SAARC countries, and Nepal ranks 41st ber 2019 and returned after assurance of among the sugar producing countries in payment by the government. The farm- the world. Sugarcane is a major cash crop ers then postponed the protest after the in Nepal and it contributes 2.1 percent of sugar mill owners also assured them that the Agriculture Gross Domestic Product they would be paid. The payments out- (AGDP). Despite its position in relation standing in December 2019 added up to to the hectare it covers, Nepal lies in the NRs. 1.40 billion and following some pay- 41st position among others in terms of ments had come down to NRs. 650 million the volume of production. Nepal produces in December 2020. Some banks had also 0.16 percent of the total sugarcane in the issued notice of auction of collateral land world. that the farmers had provided for loans Proper care to the sugarcane crop after they were not repaid. This article can lead to good harvests for at least three discusses sugarcane cultivation and the years after plantation and this can result issues faced by farmers in Kapilvastu and in sizeable earning for farmers. Further, Nawalparasi (West) districts, which are sugarcane can be grown also on land not similar to those faced by sugarcane grow- suited for other crops, which is also ad- ers across Nepal. vantageous to people with lands not good Agriculture is the main source of for other crops. Sugarcane farming is done household income in West Nawalparasi in 15 districts of Nepal’s Terai (plains). and Kapilbastu districts of Lumbini Prov- Some of the major problems faced ince. According to the statistics of Food by Nepal’s sugarcane farmers are lack of and Agriculture Organization Corporate 82 Problems and Challenges of Sugarcane Farmers 2018, sugarcane is grown on 71,466 hect- Research Methods ares of land in Nepal and the production The study used a number of tools to is about 3.23 million tons of sugarcane collect information for this report. These each year, making it a major cash crop.1 included field observations, interviews, In West Nawalparasi, sugarcane is grown consultations with farmers, review of in about 5,100 hectares of the total 25,955 relevant reports, including relevant laws hectares of cultivatable land in the dis- and agreements and reports published in trict. In Kapilbastu District about 4,000 the media. farmers were engaged in sugarcane farm- The study was limited to five ru- ing. There are three sugar mills and 117 ral municipalities of Susta, Pratappur, crossers in district – Lumbini Sugar Mill, Sarawal, Palhinandan, and Ramgram of Indira Sugar Mill, and Bagmati Sugar West Nawalparasi; and Krishnanagar Mill. About 4000 farmers of Shivaraj Mu- Municipality and Shivaraj Municipality nicipality and Krishnanagar Municipal- as well as Bahadurganj of Krishnanagar, ity of Constituency No. 3 were involved in and Jawahari, Chanai, Shivapur and sugarcane production. Birpur of Krishnanagar Municipality in About five years ago, the Mahalax- Kapilvastu district. The study focused on mi Sugar Mill in the district purchased the problems faced by farmers who were cane from about 8,000 growers in about not paid for their product. The study’s re- 8,000-9,000 hectare of land. But after the spondents included owners of sugar mills, mill started periodic closure every year cane growers, as well as struggle commit- since 2015, the number of growers de- tees formed by farmers to demand pay- creased to 4000 and the area under culti- ment from mill owners. vation was also reduced to 1,400 hectares. The major problems faced by the sugar- Problems Faced by Cane Growers cane growers in the district were: West Nawalparasi is an area • Delayed payments by industries to known for its sugar cane production. the farmers It was grown in 5500 hectares of about • Lack of adequate agricultural work- 25,955 hectares of cultivable land. Until ers, and not long ago, about 7,000 hectares of land • Inability of the government to en- was used for growing sugarcane, but that sure that cane growers were paid for has decreased – perhaps – reflecting the cane on time. problems faced by the farmers. Generally, Nepal’s production and supply of sugar- Objectives cane is lower than the crushing capacity The objectives of this article are, of mills. The seasonal and lower supply • To identify problems faced by farm- of cane has led the sugar mills to oper- ers engaged in sugarcane farming, ate for a short crushing periods of around and four to seven months a year.2 According to • To understand the demand of farm- the District Committee of the sugarcane ers and the outstanding payments farmers, the main reason for the lower due to them. supply compared to demand by mills is the delayed or no payment to the farmers 1. https://www.researchgate.net/publication/342457317_Prospects_and_Challenges_of_Sugar- cane_Development_in_Nepal_Production_Market_and_Policy/link/5ef5489b299bf18816e80784/ download 2. https://www.researchgate.net/publication/342457317_Prospects_and_Challenges_of_Sugar- cane_Development_in_Nepal_Production_Market_and_Policy/link/5ef5489b299bf18816e80784/ download Nepal Human Rights Year Book 2021 83 from the sugar mills. This had led to other According to the District Administration problems such as not being able to repay Office, NRs. 49 million sent to the dis- loans taken from the banks, which then trict in 2018/19 (2076 BS) as subsidy had led to the banks auctioning the collateral. remained unspent in the account of the The farmers there were yet to re- District Office of the Financial Comptrol- ceive NRs. 183.4 million in outstanding ler. The District Sugarcane Production payment from the three sugar mills in the Organization members said this amount district. Umesh Kumar Yadav, Chairper- has remained at the office because of the son of District Sugarcane Producers’ Or- difficult legal procedure involved in re- ganization, said the outstanding amount ceiving payments. According to Umesh to farmers at the Sunwal Sugarcane Mill Kumar Yadav, the Chairperson of Dis- was NRs. 100 million, Indira Sugarcane trict Sugarcane Producers’ Organization, Mill NRs. 80 million, and Bagmati Sugar- even the government has been delaying cane Mill, NRs. 3.4 million. in providing the subsidy to the farmers. Binod Kalwar, a cane grower at The farmers had not received the subsidy Pratapapur-8 said he had promised his earmarked for payment in 2019. money lender an interest of five percent Likewise, in Kapilbastu, even each month but because he was unable to though sugarcane is a major produce and pay, the person has now begun growing there are sugar mills, crushers, and juice crops on his land. My payment has been makers who buy cane locally the farm- due for three years and now, the land (col- ers were deprived of getting good value lateral) could be auctioned. Another cane after the Mahalaxmi Sugar Mill shifted grower from Susta-5 said, “We were forced the factory. This mill itself had not paid to quit sugarcane farming and go for other farmers NRs. 70 million before it moved, crops because we have not received pay- and 8000 farmers there had not received ment for three years. Wherever we go, we the government subsidy of NRs. 25 per need to borrow money on interest, we are quintal of produce. This was supposed to afraid we have to face the same problems have been provided in 2015/16 (2071/72 with other crops also.” BS). The Lumbini Sugar Mill of Sun- The farmers said they had not re- wal owed NRs. 100 million to the farm- ceived payment for the sugarcane from ers. The mill was closed at the time of the mill owners since 2015. These farm- the study. Jorsingh Majhi, the Assistant ers from Nawalparasi, and Kapilbastu District Administrator, said that the mill and other parts of the country first came owners had been out of contact for about to Kathmandu to demand their payments 15 months. Durga Chaturvedi, Chief of in December 2019. Many feared that the the Sales Management Section of Indira banks could move in an auction the collat- Sugar Mills, said “Farmers are disap- eral to recover their loans and that would pointed because they have not been paid, leave them with nothing. our problem is the inability to sell sugar The protests in Kathmandu cul- in the market which is why we have not minated in an agreement between the been able to pay.” There are also some government and farmers on January 3, disputed payments. In the case of Indira 2020 that said the payments would be- Sugar Mill the farmers said it had not gin within January 21, 2020. Thereafter paid NRs.80 million, which the mill said the farmers postponed their protest.