Himal Press 
KATHMANDU: The government has set the minimum support price for the new harvest of sugarcane at Rs 565 per quintal for 2024. Since the government is offering sugarcane farmers a subsidy of Rs 70 per quintal, farmers will get Rs 635 per quintal.
A cabinet meeting held on Wednesday took the decision, according to Minister for Communication and Information Technology and Government Spokesperson Rekha Sharma.
Last year, farmers received Rs 610 per quintal, which included Rs 70 per quintal government subsidy, for their sugarcane crop.
Nepal produced 3.16 million tons of sugarcane across 64,354 hectares in 2022, according to the Ministry of Agriculture and Livestock Development.
The country’s sugar mills can crush over 400,000 tons annually. However, they are operating at less than 50% capacity. Consequently, Nepal faces an annual sugar deficit of about 100,000 tons. The government resorts to imports through its entities to address this shortfall. However, due to delays in imports and India’s ban on sugar exports, the sweetener’s price surged to as high as Rs 150 per kg in the Kathmandu Valley. The price has since moderated to Rs 115 per kg.
Nepal’s annual sugar consumption is estimated at 230,000 tons, with 65% being used for household purposes and the remainder for industrial use.
