New procedure for distribution of incentive subsidy directly to the accounts of sugarcane farmers
Kathmandu. The incentive subsidy provided by the government to the sugarcane farmers will now be paid directly to the personal bank account of the farmers. The government has issued the ‘Procedure on Giving Incentive Subsidy to Sugarcane Producers, 2083’ to make the subsidy distribution process systematic and transparent.
The Ministry
of Agriculture, Forest and Environment has issued the working procedure as per the sub-section (4) of Section 65 of the Economic Procedures and Financial Responsibility Act, 2076. As per the new procedure, sugarcane producers, firms, groups and cooperatives willing to receive the subsidy have to apply for enlistment at the concerned local level within mid-July to mid-October every year.
The local level will have to make necessary scrutiny on the application and certify the final records of the farmers by mid-November. The certified details should be sent to the secretariat of the district-based payment committee and the office of the agriculture department.
The process of distributing grants will be started on the basis of certified data. For this, a payment committee will be formed under the coordination of the Assistant Chief District Officer in the districts where the sugar mills are operating. The committee will consist of the chief member-secretary of the Treasury and Account Comptroller Office and the chief members of the District Agriculture Office and Inland Revenue Office.
Sugar mills will have to submit the details of the purchased sugarcane and farmers to the concerned local level every 15 days after the start of sugarcane crushing. Based on the recommendation of the local level and the decision of the payment committee, the Office of the Treasury and Financial Comptroller will deposit the subsidy amount in the personal bank account of the farmers.
The procedure has made the subsidy payment based on the order of sale of sugarcane. The farmers who sell sugarcane first will be given first priority (first come, first serve). Even if the sugarcane is sold through a group or cooperative, the subsidy amount will be deposited in the personal bank account of the concerned farmer.
Similarly, sugar mills will have to submit a sugarcane procurement and crushing action plan to the Department of Agriculture within November of every fiscal year. This is expected to facilitate coordination between the details of the sugarcane purchased by the sugar mills and the records of the farmers receiving the grant.
The procedure provides for action against those who misuse the grant by submitting fake details. Government or government-owned organizations will not be allowed to receive such grants.
The government expects the new provision to ensure transparency in the distribution of subsidies and ensure direct access to the money received by the farmers. It is also expected to encourage commercial sugarcane farming and facilitate regular supply of raw materials required for the sugar industry.
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