Kathmandu: The sugar mills in the country are facing problems in procuring cane for the crushing as most of the farmers have quit sugarcane cultivation due to nonpayment of their cane dues.
The delay in cane payments has demotivated farmers from cane cultivation and the area under sugarcane cultivation continues to dwindle every year.
Four sugar mills have already halted their operations while ten others are operating with lower capacity due to lack of sugarcane.
Kapilmuni Mainali, president of Nepal Federation of Sugarcane Producers (NFSP) said, since the last seven years the sugar production is declining by 20 per cent.
“The mills had crushed 26 million tonnes sugarcane seven years ago while last year they crushed only 16 million. The number is likely to drop this year,” he said.
According to Nepal Sugar Mills Association, Annapurna Sugar Mill, Lumbini Sugar Mill, Indira Sugar mill and Shree Ram Sugar Mill ltd have been shut down.