Sugarcane farmers in Sarlahi have voiced dissatisfaction with the government’s recent adjustment to the minimum support price for sugarcane. In a collective effort, three prominent organizations representing these farmers submitted a memorandum to the Chief District Officer, Komal Prasad Dhamala, asserting their objection to the current pricing decision.

The government had recently increased the floor price of sugarcane by Rs 25 per quintal compared to the previous fiscal year, setting it at Rs 565 per quintal for the ongoing season. Despite this increment, the farmers argue that a fair price should be fixed at Rs 750 per quintal, as stated by President Kapil Muni Mainali of the Federation of Nepal Sugarcane Producers Association.

The farmers not only urged for an increased support price but also stressed the importance of promptly distributing the subsidy grant from the previous year. This appeal was detailed in the memorandum presented to Chief District Officer Dhamala.

Although floors have been implemented to protect farmers from being exploited in Nepal, economists would argue that price floors are inefficient as they decrease demand. Something to consider when interfering with market prices is that a higher floor price does not guarantee higher revenues and in some cases, has led to the loss of revenues for farmers.