Nepal : Sugar mills in Tarai prepare to end crushing as cane supply declines

Sugar mills in the Tarai region are preparing to shut down operations as the supply of sugarcane from farmers’ fields is nearly exhausted, Rising Nepal Daily reported.

The sugarcane yards of three mills in Sarlahi—where trucks and tractors carrying cane usually line up—are gradually becoming empty. Most sugar factories in the Tarai, including those in Sarlahi, are expected to stop crushing operations within the next week to ten days.

Administrative chief Shiv Shankar Mahato of Mahalaxmi Sugar Industry in Bagdaha said the mill is likely to close within ten days as the supply of sugarcane has declined sharply.

Mahato said the mill has already crushed about 1.185 million quintals of sugarcane this season and plans to run for a few more days before closing. The management is also preparing to issue a notice asking farmers to bring any remaining cane to the mill immediately.

Two weeks ago, the yards outside the mills were filled with trucks and tractors loaded with cane. Now only a few vehicles can be seen waiting to unload.

Farmer Ramkalyan Yadav from Dhankaul Rural Municipality said the number of farmers bringing cane to Annapurna Sugar Mills has dropped significantly. Earlier, vehicles carrying sugarcane would line up along the road in front of the mill, but the area is now mostly empty.

However, Indu Shankar Sugar Industry in Harion said it is still receiving a steady supply of sugarcane. Sugarcane manager Yog Narayan Rajak said the mill has been operating for 84 days and has crushed about 2.375 million quintals of cane so far.

Rajak said the factory hopes to continue operations for about 120 days if farmers keep bringing cane. The mill is ready to continue crushing throughout the month of Chaitra if the supply remains steady.

Meanwhile, sugar mills nearing the end of the crushing season said payments to farmers are being made in installments according to a schedule.

This year, the government has fixed the sugarcane price at Rs 620 per quintal to be paid by mills, along with an additional subsidy of Rs 70 per quintal from the government.

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