Money
Cane farmers end protest as mill agrees to clear dues
Agitating sugarcane farmers who padlocked Everest Sugar Mill in Mahottari for the last one month ended their protest on Monday after the factory owners promised to clear the outstanding dues by mid-September.Santosh Singh
Agitating sugarcane farmers who padlocked Everest Sugar Mill in Mahottari for the last one month ended their protest on Monday after the factory owners promised to clear the outstanding dues by mid-September.
At a tripartite meeting held between the District Administration Office, cane farmers and Everest Sugar Mill on Sunday, the factory agreed to start distributing payments immediately and make sure that all the farmers get their money by mid-September, said Naresh Singh, president of the Sugarcane Producers Farmers’ Association, Mahottari.
On May 20, the farmers padlocked the entrance, administrative block and the plant’s production unit after the mill refused to release the payment of around Rs1.78 billion it owed to sugarcane farmers for their crops.
According to Singh, the sugar mill agreed to pay Rs600 million immediately as the first installment.
“The remaining money will be paid by mid-September.” He said that the money would provide some relief to the farmers who have not received payment for their crops for months. Cane farmers lost their patience after not getting their money for the last six months. They sold 426,000 tonnes of cane worth Rs2.22 billion to the factory this year.
As per an agreement between mill owners and cane farmers, the growers should get their money within 30-45 days after delivering their crops. Everest Sugar Mill did not pay the farmers even after 127 days had passed since they delivered their sugarcane. The sugarcane growers complained that they could not clear their debts after the mill stalled payment.
Last week, the Home Ministry ordered sugar mills who have not been making payments to cane farmers on time to prepare a reliable payment plan as the outstanding debts have been piling up. Issuing a notice through the respective District Administration Offices (DAOs), the ministry instructed the proprietors of four sugar mills—Annapurna Sugar, Sarlahi; Everest Sugar and Chemicals Industries, Mahottari and Indira Sugar Mills and Bagmati Sugar Mills in Nawalparasi—to settle the dues as soon as possible.
The Home Ministry swung into action after farmers complained that they depend on the payment from the sugar mills to feed their families. The DAOs have warned Rakesh Agrawal of Annapurna Sugar, Shashi Kant Agrawal of Everest Sugar, Gyan Prasad Bhattarai of Indira Sugar Mills and Jagadish Kumar Agrawal of Bagmati Sugar Mills. These four sugar mills owe a combined Rs8 billion to the sugarcane farmers.
Minister for Industry, Commerce and Supplies Matrika Prasad Yadav said they held talks with the Home Ministry a few days ago to take stern action against the nonpayers.