Lumbini Sugar Mill, Indira Sugar and Agro Industry, and Bagmati Khadsari Sugar Mill have halted production since Sunday after Sugarcane Producers Committee, Nawalparasi, stopped supplying sugarcane to these factories. The farmers are asking for Rs 450 per quintal of sugarcane.[break]
Though disputes between sugarcane farmers and sugar mills at the onset of new crushing season are not new, this time an agreement made on December 10 had set the new procurement price at Rs 411.50 per quintal of sugarcane. The price was fixed by a tripartite committee, which included officials from the Ministry of Agriculture and Cooperatives as well.
“Despite agreeing on the rate, which is applicable nationwide, Nawalparasi farmers suddenly stopped supplying sugarcane to us from Sunday, demanding an upward revision of the price. This is unfair,” said officials of the three sugar mills in a joint statement on Friday.
The new rate for sugarcane this year was fixed following a month-long agitation by farmers. The farmers were pressing for Rs 450 per quintal and instant payment of their dues. Last year, sugarcane procurement price was fixed at Rs 401 a quintal.
Though farmers initially took a strong stand, Federation of Sugarcane Producer Farmers (FSPF) later agreed to Rs 411.50 per quintal, saying farmers have no option because the crop was wilting in the farms and that was causing more loss to farmers.
The agreement facilitated resumpton of sugarcane supply to sugar mills. Nawalparasi farmers too agreed with the rate and were supplying sugarcane to the factories. However, they suddenly changed their mind from Sunday last, said officials at Lumbini Sugar Mill.
There are eight sugar mills in the country and three of them are in Nawalparasi district alone. Factories in other districts have not faced any problems over the rate, so far. The halting of production at the three factories in the main production season is expected to hurt the output. This year, the government estimated the sugar output to go up significantly as there has been a bumper production of sugarcane.
Unlike last year, when around 150,000 tons of sugar was produced against an annual demand of around 200,000 tons, the government had estimated the sugar production in 2011/12 to grow by 13 percent to 2.93 million tons.
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