Kathmandu, Jan. 22 -- Salt Trading Corporation has decided to buy 20,000 tonnes of sugar from domestic producers with the objective of maintaining intervention stocks. It will sell sugar from its stores to stabilise market prices if they should fluctuate widely.

The state-owned company has planned to maintain a buffer stock through the new purchase with sugar mills mulling to increase prices. It currently has 8,000 tonnes of sugar in stock. Corporation spokesperson Kumar Rajbhandari said they planned to purchase sugar from domestic producers. According to him, a tender notice was issued last week.

There are 14 sugar mills operating in the country. They claim that they have 40,000 tonnes of unsold sugar in their warehouses.

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