Indira Sugar Mill owes Rs. 70 million to farmers
Indira Sugar Mill in Nawalparasi (West) still owes farmers Rs 70 million, despite the start of the crushing season. The mill hasn’t operated or cleared dues for three years, and its operators are reportedly in India. Local authorities and farmer groups are exploring selling remaining factory materials to recover payments.
Indira Sugar Mill (Indira Sugar and Agro Industries Pvt. Ltd.), located in Pratappur Rural Municipality of Nawalparasi (West), still owes farmers Rs. 70 million in payments.
Even though the sugarcane crushing season has already begun, the mill has not cleared farmers’ outstanding dues accumulated over several years, nor is there any sign of the industry resuming operations.
While other sugar industries in the district have already started operating this season, the operators of Indira Sugar Mill remain out of contact. It is reported that the mill’s operators have been living in India. The industry has failed to pay farmers for sugarcane purchased over the past three years.
Umesh Chandra Yadav, spokesperson of the Sugarcane Producers’ Federation and Chairperson of Pratappur, said that as there are some raw materials and saleable goods still at the factory, efforts are being made to recover farmers’ money by selling those materials if necessary. “The industry operators have not come into contact, and in coordination with the local administration, efforts are underway to ensure payment to the farmers,” said Yadav.
At present, only security guards are stationed at the factory. The industry has not carried out cleaning or maintenance works either. As a result, local farmers say there is little possibility of the mill operating this year.
Meanwhile, Bagmati Sugar Industry, located at Kudiya in Susta Rural Municipality of the district, has been in operation since December 7, while Lumbini Sugar Industry in Sunwal has been operating since December 21.
The industries have stated that sugarcane procurement is currently taking place at full pace. Keshav Acharya, manager of Lumbini Sugar Industry, informed that the industry is already in operation and assured that farmers would be paid regularly for their sugarcane.
At present, farmers in Nawalparasi (West) are busy harvesting and selling sugarcane. For the fiscal year 2025/26, the government has fixed a total price of Rs. 690 per quintal, comprising a support price of Rs. 620 and a subsidy of Rs. 70.
Although the government announced a subsidy of Rs. 70 last year, only Rs. 35 was actually provided. According to the government-determined price, sugar industries must pay farmers Rs. 620 per quintal this year.
The additional subsidy amount set by the government will be transferred to the respective farmers’ bank accounts by the Financial Comptroller General Office (FCGO) based on details provided by the industries.
Farmers have still not received the Rs. 35 per quintal subsidy that was cut last fiscal year. Despite repeated pressure from the Sugarcane Producers’ Federation on the government to release the remaining Rs. 35 out of the promised Rs. 70, full payment has not yet been made.
Federation spokesperson Yadav said that although assurances have been given that the outstanding amount would be paid, this has not been fulfilled. Farmers in Nawalparasi are still owed nearly Rs. 80 million in subsidy payments.
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Source : Rising Nepal Daily
