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Salt Trading steps in to stabilise LPG, sugar distribution

After the Trishuli River eroded the road at Krishnabhir in Dhading last Sunday, completely blocking the Prithvi Highway, the corporation began looking for alternatives. It has now arranged to fill its STC cylinders at private gas plants and transport them to Kathmandu through alternative routes.
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By REPUBLICA

KATHMANDU, Sept 3: Salt Trading Corporation Limited has begun filling its STC cylinders at private gas plants in collaboration with private LPG companies to ensure a smooth supply of cooking gas.



After the Trishuli River eroded the road at Krishnabhir in Dhading last Sunday, completely blocking the Prithvi Highway, the corporation began looking for alternatives. It has now arranged to fill its STC cylinders at private gas plants and transport them to Kathmandu through alternative routes.


The highway blockage has also affected the corporation’s LPG plant at Jugekhola in Dhading. As LPG bullets could no longer reach its plant, the corporation began working with private companies, including Manoj and Baba Gas, whose plants are located in accessible areas. Empty STC cylinders are being filled there and brought into the Valley through alternative routes.


Bajresh Jha, assistant chief executive officer of the corporation, said the arrangement was made to prevent a shortage of cooking gas amid the severe natural disaster.


“In the first phase, the STC cylinders filled at the two private plants will reach Kathmandu by Friday,” he said.


The corporation has also diverted some LPG bullets originally destined for its own plant to the private companies.


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Limited quota restricts distribution


Although the corporation is trying to maintain gas supplies, its ability to sell sufficient quantities remains limited because Nepal Oil Corporation has provided it with a small quota, or PDO.


Nepal Oil Corporation has reportedly contracted Indian Oil Corporation to supply a total of 3,025 LPG bullets. Of this, only about 2 percent, or 53 bullets, have been allocated to Salt Trading Corporation.


The corporation currently distributes around 55,000 to 60,000 STC cylinders each month.


Consumers have faced difficulties as private gas companies have cited the Gulf crisis, the recent disruption of the Prithvi Highway and other reasons for supply problems. Salt Trading has been using a coupon system to make distribution more orderly.


“We ensure that consumers know the date on which they will receive gas when we distribute the coupons,” Jha said.


Six months’ stock of iodised salt


Following the government’s policy of ensuring affordable access to iodised salt, Salt Trading Corporation has maintained enough stock to meet demand for six months.


As of Wednesday, Bhadra 17, the corporation had 127,361 metric tonnes of salt in storage, Jha said. Annual demand for iodised salt across the country exceeds 200,000 tonnes. The corporation distributed around 210,000 tonnes in the last fiscal year.


Iodine is an essential micronutrient required by the human body. The government has been urging consumers to use salt in moderation and in the proper amount.


Consumer rights advocates have argued that salt, as an essential commodity, should remain under government control and that private companies should not be allowed to enter its distribution system.


They argue that private companies cannot guarantee reliable salt supplies during emergencies. The corporation’s response during the current disaster, they say, demonstrates the important role public institutions can play in maintaining essential supplies during difficult circumstances.


Market intervention in sugar


The corporation has also intervened in the sugar market by strengthening distribution as international sugar prices continue to rise.


While private traders are selling sugar for as much as Rs 135 per kilogram, Salt Trading is selling it for Rs 100 per kilogram.


According to the corporation, it imported 600 tonnes of sugar on Bhadra 9 alone. It has been selling sugar in line with government policy and has released 3,000 tonnes into the market in recent days.


Prices of everyday food items, including rice, lentils, pulses and cooking oil, have continued to rise. Salt Trading, however, says it has managed to keep the prices of the food products it distributes stable.


“The corporation, which has both government and private ownership, is committed to ensuring continuous supplies of essential consumer goods, including salt and other food items, even during difficult circumstances. Its purpose is not simply to make a profit,” Jha said.


The role and importance of public institutions become even greater during disasters, when uninterrupted access to essential commodities becomes critical.


 


 

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