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Salt Trading Corporation Limited (STC) has begun filling its own LPG cylinders at private gas plants as part of an alternative arrangement to ensure uninterrupted cooking gas supplies to consumers following the disruption of the Prithvi Highway.

The state-owned corporation adopted the measure after the Trishuli River eroded the highway at Krishnabhir in Dhading last Sunday, completely blocking the major road link and disrupting the transportation of LPG to STC’s plant at Jughekhola, Dhading.

With LPG bullets unable to reach its own plant, STC has partnered with privately operated plants, including those of Manoj and Baba Gas, to refill its empty ‘STC cylinders’ and transport them to Kathmandu through alternative routes.

STC Assistant Chief Executive Officer Bajresh Jha said the arrangement was introduced to prevent a shortage of cooking gas amid the ongoing natural disaster.

“Under the first phase, the cylinders filled at the two private plants are expected to reach Kathmandu by Friday,” Jha said.

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

Limited quota remains a challenge

STC says its ability to meet demand is constrained by the limited LPG quota—or Product Delivery Order (PDO)—allocated by Nepal Oil Corporation.

Nepal Oil Corporation has reportedly contracted the supply of 3,025 LPG bullets from Indian Oil Corporation, of which STC receives only around 2 percent, or 53 bullets.

STC currently distributes around 55,000 to 60,000 cylinders a month.

Consumers have faced difficulties in recent months as private gas companies have cited factors including the Gulf crisis and the disruption of the Prithvi Highway as reasons for supply interruptions.

STC has been using a coupon-based distribution system to make supplies more predictable. Jha said consumers are informed of the date on which they will receive gas at the time the coupons are distributed.

Six months’ stock of iodized salt

STC has also maintained sufficient stocks of iodized salt to meet national demand for around six months, in line with the government’s policy of ensuring easy access to iodized salt across the country.

As of Wednesday, August 19, the corporation had 127,361 metric tons of salt in stock, according to Jha.

Annual demand for iodized salt in Nepal exceeds 200,000 tons, while STC sold around 210,000 tons during the last fiscal year.

Iodine is an essential micronutrient required by the human body. The government has been promoting iodized salt bearing the twin-child logo under its campaign urging consumers to “eat less, eat the right 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 say private suppliers may struggle to ensure adequate supplies during disasters and other emergencies, while STC has demonstrated the importance of public institutions in maintaining essential services during crises.

STC intervenes in sugar market

STC has also stepped up its intervention in the sugar market as international sugar prices continue to rise.

While private retailers have been selling sugar for as much as Rs 135 per kilogram, STC is selling it at Rs 105 per kilogram in line with government policy.

The corporation imported 600 tons of sugar on Aug 25 and has so far released around 3,000 tons into the market, according to STC.

Although prices of essential food items such as rice, lentils, pulses and cooking oil have continued to rise, the corporation says it has managed to keep the prices of the food products it sells stable.

Jha said STC’s primary objective as a government-private jointly owned corporation is to ensure continued access to essential commodities, particularly salt and other food items, even during difficult circumstances.

“Our objective is not only to make a profit, but to ensure continuous service and supply of essential consumer goods even during difficult situations,” he said.

The corporation’s role highlights the growing importance of public institutions in maintaining the supply of essential commodities during natural disasters and other emergencies.