They say Shreeram Sugar Mills has not paid them for canes procured from them last year. The cash-starved farmers said life was becoming difficult for them as they have not received last year's payment even though the new crushing season has already begun. The mill is yet to pay nearly Rs 600 million to the sugarcane farmers.The mill has cited reasons like closure of the mill, bank and financial institutions and industries because of the strike enforced by Unified Democratic Madhesi Front (UDMF) for the last two months as the reasons behind the delay. The mill hasn't released any payment to farmers since the Madhesi parties enforced strike in mid-August.
Kapil Muni Mainali, president of Sugarcane Producers Association, told Republica that delay in release of payment by the mills has made life difficult for the farmers. "The mill owes millions of rupees in outstanding payment to farmers. The festival will have no charm for farmers this year," said Mainali.
He also accused the industries of dealing double blow to farmers - first by cheating in price fixation and second by delaying payment. According to Mainali, Shreeram Sugar Mills has not even paid farmers the advance payment as per the price fixed by the government in coordination with mills and farmers last year.
The government had fixed minimum support price of sugarcane at Rs 350 per quintal for last year.
Mainali also said that production has gone down this year compared to last year because of the mill's indifferent toward farmers. "First they made excuse of price dispute and fixation. Now they have stopped our payment under the pretext of banda," Ashok Yadav, district chairperson of Sugarcane Producers' Association, told Republica.
Ashok Sah, a farmer of Ganga Pipra, said he had borrowed money from relatives to celebrate the festival. "Every year I used to buy cloth for my children and family members for Dashain. This year, I haven't bought anything as I don't have any money," Sah, who is yet to receive Rs 400,000 from the mill, said.
Rajesh Chaudhary, a farmer of Bhalohiya, also shares similar problem. "I am yet to clear wages of laborers that I had hired to harvest sugarcane as well as transportation charge to tractors entrepreneurs," said Chaudhary.
The mill owes Chaudhary Rs 2 million for last year's sugarcane purchase.
"My payment is lying idle in mill owner's account and I am forced to borrow from others to meet my financial needs," he lamented.
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