Sugar mills file writ against govt-fixed sugarcane prices

Kathmandu, July-9 Sugar mill operators have filed a writ petition at the Supreme Court against a government-fixed rate for sugarcane. The government, on March 27, had fixed the rate that mill operators pay farmers for sugarcane at Rs 461 per quintal.

Citing an inability to pay farmers at those rates, sugar mill operators had filed a writ petition against the government on the third week of June. The writ has named the Ministry of Industry (MoI), the Ministry of Agricultural Development (MoAD), Sugarcane Producers Association (SPA) and the Office of the Prime Minister and Councils of Ministers (OPMCM) as defendants.

"The hearing of the writ petition against the government-fixed price of sugarcane will be held on July 12," Kapil Muni Mainali, president of SPA told Republica. The court had previously fixed a hearing for May 27.

According to Mainali, mill operators still owe farmers around 65 percent in payments at those prices. "Some mills have made payments at 40 percent of the government-fixed rates while others not even paid at 15 percent," Mainali said, adding: "Some mills still haven't paid farmers last year's due."

The government had taken upon itself to fix sugarcane prices after farmers and sugar mills failed to reach consensus after multiple rounds of negotiations. While sugar mills had asked for a cut in sugarcane prices from the previous year's rate, farmers remained steadfast in their refusal. Last year, sugarcane prices had been fixed at Rs 476 per quintal.

MoI had asked OPMCM to fix the sugarcane prices after farmers and sugar mills could not reach consensus despite a three-month long attempt. The cabinet however asked MoI to fix the rates on its own.

Eleven sugar mills operate in the country.

Source: Republica