Police are watching over virtually deserted roads around Kathmandu
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A rebel blockade of the Nepalese capital Kathmandu has entered a second day, as the government seeks talks with the Maoists to end the crisis.
The blockade has stopped food and other supplies reaching the city.
Two major roads linking Kathmandu with the rest of the country are virtually deserted as drivers stay off the roads fearing rebel attacks.
The Maoist demands include the release of detained rebels and an inquiry into the killings of others.
There are few visible signs of the Maoists, who say they will halt supplies to the city indefinitely unless their conditions are met.
The Nepalese authorities say they want to negotiate an end to the blockade.
"Neither can we finish the Maoists, nor can they capture Singha Darbar (the federal government secretariat in Kathmandu). Both must accept co-existence," Deputy Prime Minister Bharat Mohan Adhikary told Reuters news agency.
"We are ready to solve the problem peacefully. We are ready to talk to them without any condition," he said.
Shortage fears
Peace talks fell through last year after Kathmandu rejected a rebel demand for an assembly to draft a new constitution and decide the future of the monarchy.
Analysts say the rebels are blockading the capital to step up the pressure on the government to resume peace talks on their terms.
The capital showed few signs of panic buying on Thursday.
However, there are fears of food, cooking oil and gasoline supplies running short if the blockade continues for more than a few days.
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The Maoists are now targeting Kathmandu to show their strength
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Kathmandu had enough kerosene for a few days' cooking, Industry Minister Iswor Pokhrel told the Associated Press agency.
The country's only petroleum distributor, Nepal Oil Corporation, had fuel stocks for cars and buses for about two weeks, officials said.
Kathmandu has a 10-week stock of food and other vital supplies, the Nepal Consumers' Forum told AFP agency.
Correspondents say that security forces have been patrolling the roads leading into the city, but drivers are not taking any risks.
"Even if we get protection today, the rebels could take action against us for refusing their order, or even next week," truck driver Mahesh Lama told the Associated Press.
Army officials said they were escorting a few vehicles - mostly public buses - defying the blockade.
Separately, Nepalese journalists have launched a protest campaign against what they call the excesses of the Maoists.
It follows the killing of a radio reporter in the western hill district of Dailekh and death threats against 10 other journalists.
Closed businesses
The United States has said that the rebel threats and violence show their disregard for Nepalese people.
"These reprehensible acts only harm innocent Nepalis and weaken Nepal's fragile economy," the US state department said.
"Legitimate grievances of Nepalis must be resolved through peaceful, political means."
Some of Nepal's leading businesses have closed operations after threats from rebels.
A luxury hotel, the country's largest cigarette maker and a bottling company have already shut down, according to reports.
The government refuses to disclose how many rebels are in detention.
Amnesty International says atrocities are committed on both sides of the conflict.
The Maoist rebels have been engaged in an armed struggle since 1996 to replace the monarchy with a communist republic.
About 9,000 people have died in violence between the rebels and security forces since then.