Kathmandu, July 24 -- The government has cut the subsidy it provides to sugarcane farmers for the last fiscal year's harvest by half, citing growing pressure on the treasury.

According to the minutes of the July 7 Cabinet meeting, the per-quintal subsidy has been reduced to Rs35 from Rs70. The decision comes as farmers say their production costs have surged.

In November last year, the government had set the minimum support price for sugarcane at Rs585 per quintal, a Rs20 increase from the previous year.

Officials at the agriculture ministry said they had requested a full subsidy, but the finance ministry and the Prime Minister's Office declined the request. The Cabinet later agreed to provide only half the subsidy.

The government had ...