LPG Cylinder Shortage Hits Mumbai Bakeries, Bread Supply at Risk

A shortage of commercial LPG cylinders is disrupting bakery operations across Mumbai, raising concerns about a potential bread supply shortage in the city.

The issue comes as multiple cities across India report disruptions in LPG availability, affecting restaurants, bakeries and food businesses that rely on cooking gas for daily operations.

While the government insists that there is no nationwide LPG crisis, supply disruptions and rising prices are beginning to impact businesses in major cities.

Mumbai Bakeries Halt Production

Several bakeries across Mumbai have reportedly halted production after struggling to secure commercial LPG cylinders needed to operate their ovens.

According to industry sources, thousands of bakeries in the city rely on LPG to maintain regular bread and bakery production.

Ashfaque Siddique, Vice-President of the Bombay Bakers Association, said many bakeries are already facing operational shutdowns due to the shortage.

“It cost me around Rs 20 lakh to replace my wood-fired ovens with LPG ovens. For two days I somehow managed cylinders, but since yesterday my bakery has stopped operating,” Siddique said.

The situation has intensified after the Brihanmumbai Municipal Corporation (BMC) ordered bakeries to shift away from wood and coal-fired ovens to cleaner alternatives such as LPG, piped gas or electric ovens following a Bombay High Court directive.

Industry groups estimate that 2,500 to 3,000 bakeries across Mumbai are currently facing LPG supply issues.

Bakery owners warn that if supplies are not restored quickly, bread availability in the city could be affected—particularly impacting migrant workers and low-income households who depend on bread as an affordable staple food.

LPG Price Hike Pressures Food Businesses

The LPG shortage comes at a time when commercial LPG prices have also increased, adding financial pressure on food businesses.

According to Madhav Kasturia, CEO and Founder of Zippee, the price of a 19-kg commercial LPG cylinder has risen by about Rs 114 to nearly Rs 1,883 in Delhi, while domestic LPG cylinder prices have increased by Rs 60 to around Rs 913.

For restaurants, cloud kitchens and food vendors that rely heavily on LPG, the price hike could significantly increase operating costs.

Kasturia warned that rising fuel costs could lead to higher menu prices, tighter margins for food businesses and possible changes in consumer demand on quick commerce platforms.

Cloud Kitchen Industry Could Be Affected

The impact of rising LPG prices could extend beyond bakeries and restaurants to India’s rapidly growing cloud kitchen industry.

India’s cloud kitchen market was valued at approximately $1.2 billion in 2025 and is projected to reach $3.7 billion by 2034, with most operations relying heavily on LPG for daily cooking.

Industry experts say sustained increases in LPG costs could squeeze vendor margins, force menu price revisions and potentially reduce order frequency from price-sensitive consumers.

Government Denies Nationwide LPG Crisis

Despite reports of shortages in cities like Mumbai, Bengaluru and Kolkata, the government has maintained that there is no nationwide LPG crisis.

Officials said refinery output has been increased by about 10% to stabilise supply, while authorities have also stepped up monitoring to prevent hoarding, theft and misinformation related to LPG cylinders.

However, businesses across the food sector warn that continued supply disruptions could affect food availability and prices if the situation does not improve soon.