National
Unpaid dues push sugarcane farmers into distress
Indira Sugar Mill in Pratappur remains shut this season, leaving hundreds unpaid for two years.Nabin Paudel
Sudama Gupta, a resident of ward 9 of Pratappur Rural Municipality in Nawalparasi West district, has yet to receive payment for the sugarcane he sold two years ago.
Gupta, who sold his crop to Indira Sugar Mill on credit, has repeatedly approached the industry, the local municipality and the district administration seeking payment. Although he had hoped to be paid this year, the mill’s failure to resume operations this season has left him worried that both his labour and investment will go to waste.
The mill owes more than Rs 1 million to Gupta’s family alone. “I took out loans to plant the crop and sold it to the mill on credit, only to be forced to wander like this for payment,” Gupta said. “The owners have sold the sugar made from our cane, but now that it is time to pay us, they have shut the industry and disappeared. The hard work and investment of hundreds of farmers are at risk. The government must pay attention to our plight.”
Like Gupta, hundreds of farmers in Nawalparasi West have not received payments for the past two years. Indira Sugar Mill, located in Pratappur Rural Municipality, has remained closed this season without clearing its arrears.
Following complaints from farmers, the rural municipality formally wrote to the mill, demanding immediate settlement of dues. However, the industry has not responded.
Umesh Chandra Yadav, chair of the municipality and also chair of the Sugarcane Producers’ Farmers Committee for Lumbini Province, said that while other mills in the district have been gradually clearing payments, Indira Sugar Mill still owes more than Rs 60 million.
“The mill has not paid farmers for two years,” Yadav said. “We have repeatedly sent letters and reminders to start payments immediately, but the industry remains unresponsive. The fact that the operators are out of contact has further complicated the issue.”
Of the Rs 120 million the mill owed in the previous fiscal year, it has paid Rs 60 million, leaving an outstanding Rs 60 million.
Faced with prolonged non-payment and the closure of the mill, farmers approached the District Administration Office seeking intervention.
Poshan Raj Bhandari, assistant chief district officer of Nawalparasi West, said a letter has been sent to the Department of Industry (DOI) seeking action against the mill’s proprietor, Rakesh Agrawal.
“It was found that the industry has not paid for sugarcane purchased from farmers for a long time and has failed to operate the mill,” Bhandari said. “We have written to the DOI to create the necessary environment to ensure that farmers are paid.”
While some mills, including Lumbini Sugar Mill and Bagmati Khandsari Sugar Mill, processed sugarcane in the district this year, Indira Sugar Mill failed to begin crushing operations.




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