Diwakar Golchha, vice president of Sugar Producers Association of Nepal, said sugar supply in the market has been affected due to prolonged dispute between some sugar mills and sugarcane farmers over the price of fresh harvest. “We are holding negotiation with farmers to raise the price of sugarcane by around Rs 60 per quintal over the last year´s price,” Golchha said, adding that the price will be fixed in line with the price that farmers in Indian state of Bihar get for their produce.[break]
“Our farmers will get Rs 25 per quintal more than what farmers in Bihar get,” said Golchha.
According to Golchha, around half a dozen sugar mills in the country had produced 180,000 tons of sugar last year.
Last year, the government had fixed factory gate price of sugarcane at Rs 411 per quintal and announced 70 percent subsidy on Value Added Tax (VAT) to sugar mills.
Golchha said most of the sugar mills in central Nepal have started to crush sugarcane after agreeing price with the farmers on their own. “Other mills will start production once they agree sugarcane price with the farmers,” he added. “Sugar supply will improve in the market once all the mills start production.”
However, Hemant Dhami, a leading dealer, said a handful of big traders are hoarding sugar to hike price by creating artificial shortage in the market.
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