Prices rise as Nepal rebel blockade begins to bite

KATHMANDU, Mar 15 (Reuters) - An indefinite road blockade called by Nepal's Maoist rebels crippled transport across the mountainous nation for a second day today, triggering a rise in food prices, residents and a consumer group said.

The rebels, who want to topple the monarchy and set up a communist state, have ordered the closure of all roads to Kathmandu, district capitals and other cities to try and end the absolute rule of King Gyanendra who seized power last year.

''There is no scarcity of goods in the market so far,'' said Harendra Bahadur Shrestha, chief of the Consumers' Forum.

''But the prices of fresh vegetables, fruits and other food items have gone up as the movement of trucks carrying these commodities has stopped due to the blockade,'' he told Reuters.

Life in hill-ringed Kathmandu and other towns was normal despite the blockade that started yesterday, residents said.

Authorities said Kathmandu, home to 1.5 million people, had enough food grains for two months and enough petrol, kerosene and diesel for two weeks.

The Maoists have called for a nationwide strike from April 3.

Yesterday, Maoist chief Prachanda expelled two senior rebel leaders after they accused him and another top rebel leader, Baburam Bhattarai, of deviating from the Maoist path and being soft on the monarchy.

Nepal has been in turmoil since King Gyanendra seized executive power last February. The king says he was forced to take over because politicians had failed to quell the decade-old Maoist conflict that has killed more than 13,000 people.

REUTERS SB VC1010