Nepal: Sugar imports jump as sugarcane production declines

Kathmandu: Sugarcane production in Nepal has declined in the past three years as the farmers are turning away from cane cultivation due to delays in getting payment.

Sugarcane output in 2020/21 was reported at 1.19 million tonnes, a severe drop from 2.08 million tonnes recorded in 2018/19, as per the Ministry of Agriculture and Livestock Development (MoAD).

Non-availability of improved hybrid seeds, lower productivity, and delay in receiving cane payments are the major reasons for the downfall in sugarcane production.

The fall in sugarcane production has resulted in the reduction of the number of sugar mills from two dozen to only nine.

Local media reported that Nepal has also registered an increase in sugar import bills. In 2019/20, Nepal imported sugar worth Rs 4.27 billion, up from Rs 3.12 billion in the previous year.

Sugarcane farmers are yet to receive Rs 75.90 million from the sugar mills. As per the government records, Shree Ram Sugar Mill and Annapurna Sugar Mill are yet to pay Rs 31.30 million to the farmers. Indira Sugar Mill is yet to pay Rs 10.60 million, Himalayan Sugar Mill is to pay Rs 2.41 million and Lumbini Sugar mill is to pay Rs 420,000 to the farmers.

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