Indira Sugar Mill, operated by Indira Sugar and Agro Industries Pvt. Ltd. in Pratappur Rural Municipality of Nawalparasi (West), has still not paid farmers nearly Rs 70 million for sugarcane supplied to the factory, reports The Rising Nepal.
Although the sugarcane crushing season has already started, the mill has neither cleared long-pending dues accumulated over the past several years nor shown any sign of resuming operations this season.
While other sugar mills in the district have begun crushing sugarcane, the operators of Indira Sugar Mill remain unreachable. According to local sources, the mill’s operators have been staying in India. Farmers say the industry has failed to pay for sugarcane purchased over the last three years.
Umesh Chandra Yadav, spokesperson of the Sugarcane Producers’ Federation and chairperson of Pratappur, said some raw materials and finished goods are still lying at the factory. He said attempts are being made to recover farmers’ money by selling those materials if required. He added that as the operators are not in contact, efforts are ongoing in coordination with the local administration to ensure farmers receive their payments.
Currently, only security guards are present at the factory premises. No cleaning or maintenance work has been carried out, leading local farmers to believe that the mill is unlikely to operate this year.
Meanwhile, other sugar industries in the district are already functioning. Bagmati Sugar Industry at Kudiya in Susta Rural Municipality has been operating since December 7, while Lumbini Sugar Industry in Sunwal began operations on December 21.
The operating industries have said that sugarcane procurement is taking place at full speed. Keshav Acharya, manager of Lumbini Sugar Industry, said the mill is running smoothly and assured that farmers would receive payments for their sugarcane on a regular basis.
Farmers in Nawalparasi (West) are currently busy harvesting and selling sugarcane. For the fiscal year 2025/26, the government has fixed the total sugarcane price at Rs 690 per quintal, including a support price of Rs 620 and a subsidy of Rs 70.
However, although the government announced a subsidy of Rs 70 per quintal last year, farmers received only Rs 35. Under the price set for this year, sugar mills are required to directly pay farmers Rs 620 per quintal.
The remaining subsidy amount will be deposited into farmers’ bank accounts by the Financial Comptroller General Office based on records submitted by the sugar industries.
Farmers are still waiting for the unpaid Rs 35 per quintal subsidy from the last fiscal year. Despite repeated demands by the Sugarcane Producers’ Federation for the release of the remaining amount, the full subsidy has yet to be paid.
Yadav said that while farmers have been repeatedly assured that the outstanding subsidy would be released, those promises have not been fulfilled. He said farmers in Nawalparasi are still owed close to Rs 80 million in unpaid subsidy amounts.
