Status, Importance, Problem of sugarcane production in Nepal

Sugarcane is a major cash crop and contributes 2.1% in AGDP of Nepal. This paper attempts to review and analyze the status, opportunities problem and recommendation of sugarcane productin in nepal. 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. 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. This study aims to assess the current and potential financial standings of sugarcane production, explore the challenges that sugarcane farmers face and discuss potential solutions to such challenges.

Sugarcane (Saccaharum officinarum) is a crop of Graminae family. The word “Saccharam” derived from Sanskrit word ‘sarkara’ which means sugar. It is a perennial grass having tall height with culms consistently dispersed or gathered in stools of 5-10 inch in size or more. The size of the stem/stalk is 1-2 inches in diameter and might be 10-15 feet in height under tropical climatic circumstances. It is a tropical plant that generally needs 8-14 months to become mature. Sugarcane requires high temperature up to 8-12 months or may be more for its quick growth in a year. Sugarcane as a cash crop is of great importance in nepal.

• In 2016/17 cultivation of Sugarcane on area70,807 ha there is a production of 3,219,560 ton with the productivity of 46.31 t/ha.
• In 2017/18 cultivation of Sugarcane on area 78,609 ha there is a production of 3,679,508 ton with the productivity of 46.80 t/ha.
• In 2018/19 cultivation of Sugarcane on area 71,625 ha there is a production of 3,557,934 ton with the productivity of 49.67 t/ha.

Opportunities
As can be seen ,sugarcane is a growing opportunity for a sustainable way of life. Not only can sugarcane provide the worlds increasing demand for sugar, but the by -products left ove from processing sugarcane can be processed into all sorts of valuable products and materials. Efforts have been done through the introduction of high yielding, early maturing, and frost resistant, less irrigated needed and high sucrose content varieties of sugarcane as well as by controlling diseases and pests which are harmful for sugarcane.

Production cost can also be reduced through proper utilization of by- products of the industry. For example, bagasses can be used for manufacturing paper pulp, insulating board, plastic, carbon cortex etc. Molasses comprise another important by-product which can be gainfully used for the manufacture of power alcohol. This, in its turn, is useful in manufacturing DDT, acetate rayon, polythene, synthetic rubber, plastics, toilet preparations, etc. It can also be utilised for conversion into edible molasses and cattle feed. Press-mud can be used for extracting wax .Now in Nepal the byproducts are only used for alcohol factory and cattle feed. Therefore, there should be research in the use of by-products also.

Global warming is becoming an increasing threat to the world and its up to world citizens their actions to combat it .One way to do this is to reduce the use of greenhouse gas and start using roducts that are clean and renewable .Luckily ,ethanol production reduces greenhouse gases by about 90% .So ,far,this is one of the most effective ways to reduce the use of greenhouse gas for the whole world ,and Nepal has the leading market share on producing sugarcane ,which is used to produce ethanol .Sugarcane cultivation will increase as the world relies more on increasing its renewable energy sources and reducing greenhouse gases.

Economic importance

By products of Sugarcane

1. Molasses
• It is the dark brown viscous liquid which contains about 35 % sucrose and 15 % reducing sugars.
• Used for alcohol production.
• Rum is the best potable spirit made from it and food yeast also prepared from it.
• Valuable additive in the preparation of silage.
2. Bagasses
• Main source of fuel in sugar factories.
• It is used in the manufacture of paper, cardboard, plastics and wallboard.
• Due to of its chemical composition and potential availability bagasses is well suited to manufacture of plastics.
3. Press mud
• It is the source of cane wax.
• Contains lime, reclamation of acidic soils.

Sugarcane is used as a source of energy. Gasohol (80% petrol + 20% alcohol) is prepared from sugarcane which is used in automobiles. Sugarcane provides the cheapest form of energy giving food with lowest unit of land per unit of energy produced. In Nepal more than 100,000 farm families depend upon it. So, it plays vital role in poverty alleviation in rural areas.

Problem of Sugarcane cultivation

The basic problem confronting the cane growers is to meet the high cost of cultivation.This problem is aggravated by the unreasonable statutory price paid for the can by the sugar mills .High cost of cultivation and the low price fixed for the cane suly is not, however ,the only problem of cane growers .Marketing and financial problems are also becoming very acute.

Delay in harvesting:

After raising the crop and when it is to be harvested, the farmer faces the problem of harvesting and marketing. If he crushes the cane to manufacture jaggery he will harvest the cane according to his convenience. In fact if that is so he may not face any difficulty in harvesting. But he will have the problem of only marketing the jaggery. But in a majority of the cases the farmers have entered into contrac-tual obligations with factories for supply of cane. Here the problem is that the farmer cannot harvest the crop as and when he likes. He can do it only as per the directions of the factory. Since the factory may have its own crushing schedules it may not be in a position to purchase the cane when the farmer wishes to harvest and sell it. Hence there is no option but to delay the harvest. Delay in harvesting, for whatever the reason, gives rise to some other problems,

1. Loss of cane due to theft, fire and destruction by animals
2. Loss of sucrose content if the cane ripens much earlier than required and is allowed to stand on the field beyond the normal period. If the crop is allowed to stay in the same position it gets dryed up progressively.
3. If harvesting is delayed, there is bound to be loss in weight of the cane and there will be a monetary loss to the farmer.

Access to finance and payment

Farmers shared loans and waiting for payment are acute problem in the sugarcane farming. The available loan sources in the locality are primarily banks and cooperatives. Most of the loans are collateral based and charge an average of 17-20% as interest. Interactions with the farmers indicate that they are not satisfied with the current collateral based loan facilities and the interest rates available in the market. Farmers shared that over the period of time; they have not seen any improvements in any financial and although the profit obtained from sugarcane production is higher some farmers are shaky in their choice of crop under production and replacing by other crops.

Low Yield of Sugarcane

Although Morang and Sunsari district has the high potentiality for the sugarcane production, the yield per hectare 45 tonnes/ha is extremely low as compared to India the yield is 64.5 Mt/hectare (Aradhey , 2017). Introduction of low yield sugarcane distort market through insufficient supply of sugarcane to sugar mills.

Fluctuating Production Trends

Sugarcane has to compete with several other food and cash crops like oil seeds, rice, pea, coriander
etc. Consequently, the land available to sugarcane cultivation is not the same and the total production of sugarcane fluctuates. This affects the supply of sugarcane to the mills and the production of sugar also varies from year to year.

High cost of Production and Boarder effect on sugarcane

The average cost of production of sugarcane was found NPR. 4,687/Mt. whereas, 3943 in the plant crop. In the case of ratoon crop (NPR. 3305/Mt.) in the control group and (NPR. 2998/Mt.) in treatment (PPCR, 2014). Rs.45/Kg was sugar production rate in the sugar mills (KII). Now average price of sugarcane in the country is ranges from NRs.75 to 86 in February 2017. It shows big market margin. Beside this due to open boarder area to India, while price of sugar hikes in India, trader export sugar silently and vice-versa. Therefore, trader doesn’t feel secured to store sugar leads to fluctuating price.

Short crushing season

Manufacturing of sugar is a seasonal phenomenon with a short crushing season varying normally from 4 to 7 months in a year. The mills and its labour force remain idle during the remaining period of the year, thus financial problems for the industry as a whole arises.

Small size and traditional technology of machinery

Most of the machinery of sugar mills are very old and have less capacity as well as old technology. Very less amount of margin and big investment seems in new installment therefore, sugar mills are reluctant to change the machines.

RECOMMENDATION

1. After harvesting of crop farmers loaded the material and lend to the sugar mill owner but farmers do not get immediate payment of the product. Mostly farmers depend on money comes from sugarcane for their daily living expenses but uncertain type of payment makes the farmer tedious. Therefore, the government should fixed the price of sugarcane for farmer.
2. As the nature of sugar is non perishable goods; government can store sugar in ware house before delivered it to other countries and regulate the optimum price for the consumer. Product should be developed by financial institutions to protect the sugarcane producer.
3. Agricultural Extension Department must encourage the farmers to bring more land under sugarcane cultivation. Farm visits, discussion meetings, demonstrations, published material, trainings concerning sugarcane production need to be given more attention. Importance of high yielding varieties of sugarcane should also be addressed to the farmers as well.
4. As the literate farmers have more inclination to new ideas and innovations, therefore there is a need to launch/strengthen the adult literacy programs in the rural areas. Also they should be informed about latest agricultural technologies and its uses. The extension agents need to change the attitude and behavior of the farmers in adopting modern technologies.
5. Inputs like seeds, fertilizers, chemical sprays and machinery must be provided to the farmers on subsidized rates by the government.
6. sugarcane rates and should take serious steps to resolve the farmer issues.
7. Trainings/workshops regarding losses caused by diseases, weeds and insect/pests should be arranged for farmers on monthly basis by agriculture extension agents to reduce/control the losses. Methods about selection of appropriate sprays and its timely application should also be taught to the farmers.
8. A benefit-cost analysis of sugarcane cropping suggests that sugarcane cultivation is economically viable, even if the benefit from cane is only considered in the analysis. If additional benefits from sugarcane by-products such as leaves (used for roofs and fodder), roots (used for fuelwood), bagasse and press mud and the potential of ethanol production as additional income were included in the analysis, the NPV and the benefit-cost ratio would be amplified.

Writer: Sulab Nepal (College: Gauradaha Agriculture campus)