The government has fixed the minimum support price of sugarcane at Rs. 610 per quintal for the current fiscal year 2022/23.
A Cabinet meeting held on Wednesday decided the minimum farm gate price of sugarcane based on the proposal of the Ministry of Agriculture and Livestock Development and the recommendation of the Ministry of Industry, Commerce and Supplies.
The government has decided to set the price of sugarcane at Rs. 540 per quintal and the government will give a subsidy of Rs. 70 for transportation, according to the Ministry of Agriculture and Livestock Development.
This price is Rs. 20 per quintal higher than the last year’s price.
Last year, the government fixed the price of sugarcane at Rs. 520 per quintal, while the subsidy amount for transportation was fixed at Rs. 70, making the total price Rs. 590 per quintal.
The government fixed the minimum retail price of sugarcane based on the cost of production, transportation, profit and subsidy provided by the government to the sugarcane farmers, said Prakash Kumar Sanjel, spokesperson of the Ministry of Agriculture and Livestock Development.
The Ministry of Agriculture and Livestock Development had held several discussions with farmers and the sugar factory to determine the price of sugarcane.
Sanjel said that the Ministry had fixed the minimum support price scientifically by analysing the cost of production, transportation and profit.
“Cost has been determined by adding 20 per cent profit on production cost,” he said.
According to the Ministry, around 3.16 million tonnes of sugarcane was produced in an area of 64,354 hectares in Nepal last year.
Although the annual sugar production capacity of currently operating industries is 463,950 tonnes, most of the industries are not operating at full capacity.
According to the annual household survey report 2072/73 conducted by the Central Bureau of Statistics, it appears that the average per capita consumption of sugar in Nepal is 8 kg.
Based on that consumption, the average annual demand for sugar in Nepal is 250,000 tonnes, of which 65 per cent will be used for domestic consumption and 35 per cent for industrial.
Nepal’s domestic production can meet the demand of about 71 per cent of consumers. Although sugarcane is cultivated in 41 districts of Nepal, sugarcane is cultivated commercially in 11 districts of Terai.
Source : TRN,
