Prospects and Challenges of Sugarcane Development in Nepal: Production, Market and Policy

Sugarcane is a major cash crop and contributes 2.1% in AGDP of Nepal. This paper attempts to review and analyze the status and issues of sugarcane subsector in reference with production, market and policies. Nepalese sugarcane production contributes less than 1% among SAARC countries and ranks 41st position among global sugarcane production status. Per capita consumption of sugar in Nepal is 8 kg/year and the annual production of the sugar contributes 60% of total national demand. Average recovery percentage of sugar in Nepal is very less (8.83%) as compared to other major producer countries. Very limited research activities on varietal development and technology enhancement in sugarcane has been done by Nepal Agricultural Research Council. Policy intervention of government to promote sugarcane are mainly limited to cash subsidy to the farmers, simple technology extension services, fixation of minimum procurement price and farm facilitation. There is an absence of dedicated sugarcane development organization in present context. Delay payment to the farmers, traditional technologies, lack of high yielding varieties and poor access of farmers to the agriculture loan and insurance are found as major challenges of sugarcane production in Nepal. The study suggested to establish dedicated organization to promote the sugarcane technology extension and policy facilitation from the government. Establishment of quick and transparent payment mechanism to the farmers is must to encourage farmer for sugarcane cultivation in Nepal.