|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Packaged food makers pivot to electric & biofuels amid LPG supply crisis
|
|
Tuesday, 17 March, 2026, 08 : 00 AM [IST]
|
|
Our Bureau, New Delhi
|
India’s packaged food industry is undergoing a rapid operational shift as manufacturers scramble to adopt electrical heating equipment and biofuels to counter a severe crunch in commercial Liquefied Petroleum Gas (LPG) supplies. The shortage, triggered by the ongoing West Asia conflict and subsequent shipping disruptions in the Gulf, has forced major players to rethink their energy dependencies.
Industry giants like Balaji Wafers, Gopal Snacks, and contract food service provider Compass India have confirmed they are exploring alternative energy sources to maintain production. Chandu Virani, founder of Balaji Wafers, revealed that the company received notices for only 50% of its typical monthly LPG supply in Gujarat. In response, the firm is weighing a switch to liquid fuel options and induction-based systems to bridge the gap.
Gopal Snacks has already transitioned partially, utilizing bio-coal at its Modasa and Nagpur facilities to ensure uninterrupted supply. Meanwhile, Compass Group India is deploying additional electrical equipment and "business continuity menus"—optimizing gas usage by removing items that require prolonged cooking or high fuel consumption.
The supply squeeze follows a recent government notification prioritizing domestic LPG for households over commercial use, amid fears of prolonged instability in the Middle East. This has led to a 3.5-fold spike in LPG-related searches across India, with Delhi seeing a six-fold increase, according to data from Justdial.
Beyond energy, the industry is also battling rising packaging costs, with plastic prices surging by nearly Rs 100 per kg. Sector experts warn that if the LPG shortage persists, it could ripple through the entire value chain—impacting thousands of jobs, raw material procurement from farmers, and the availability of popular snack brands. For now, the shift toward a "hybrid kitchen" model—mixing electricity, biomass, and gas—is becoming the new survival strategy for India’s food processors.
|
|
|
|
|
|
|
|
|
|