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Salt Trading Keeps Gas and Sugar Supplies Stable

Salt Trading Corporation is partnering with private gas companies to maintain LPG supplies after the Prithvi Highway closure while also keeping iodized salt stocks and sugar prices stable.

Nepalytix
5 min read
Salt Trading Keeps Gas and Sugar Supplies Stable

Salt Trading Corporation Limited has partnered with private LPG companies to maintain the supply of cooking gas after the Prithvi Highway was blocked by flood damage at Krishnabhir, Dhading.

With the highway closure preventing gas bullets from reaching Salt Trading’s LPG plant at Jugekhola, Dhading, the Corporation has started filling its STC-branded cylinders at private bottling plants, including Manoj Gas and Baba Gas.

The filled cylinders will then be transported to Kathmandu through alternative routes. Salt Trading has also redirected some gas bullets originally destined for its own plant to the private bottling facilities.

According to Assistant CEO Bajresh Jha, the arrangement was introduced to prevent a shortage of cooking gas during the disaster. The first batch of cylinders filled at the private plants is expected to reach Kathmandu by Friday.

Salt Trading, however, operates with a limited LPG allocation from Nepal Oil Corporation. NOC has an agreement to receive 3,025 gas bullets from Indian Oil Corporation, but only around 53 bullets, or roughly 2%, are allocated to Salt Trading.

The Corporation currently consumes around 55,000–60,000 STC cylinders every month. Despite the limited quota, it has maintained distribution through a coupon system, with consumers given a fixed date for receiving their cylinders.

Salt Trading also maintains a substantial buffer of iodized salt. As of September 2, 2026, the Corporation had around 127,361 metric tons of salt in its warehouses, equivalent to several months of national demand.

Nepal's annual demand for iodized salt exceeds 200,000 metric tons, while Salt Trading distributed around 210,000 tons last fiscal year.

The Corporation has also stepped in to control rising sugar prices. While private sellers are charging as much as Rs 135 per kg, Salt Trading is selling sugar at Rs 100 per kg.

It imported 600 tons of sugar on Bhadra 9 and has recently released another 3,000 tons into the market as part of the government's effort to stabilize essential commodity prices.

The moves highlight the role of Salt Trading as a market stabilizer during supply disruptions, particularly when transportation networks are damaged and private supply chains come under pressure.

While floods have pushed up the prices of several essentials, including rice, pulses and cooking oil, the Corporation says its focus remains on maintaining access to basic commodities rather than maximizing profits.

Nepalytix

Financial News Reporter

Salt Trading Keeps Gas and Sugar Supplies Stable | Nepalytix