LPG Shortage Not a Major Concern for Food Processing Sector Yet: Chirag Paswan

The ongoing LPG shortage in India is “not that much of a concern now” for the food processing sector, Food Processing Industries Minister Chirag Paswan said, even as the government continues to monitor supply disruptions linked to the West Asia conflict.

Paswan said the situation remains under control, though authorities are taking precautionary steps to manage risks arising from the geopolitical crisis.

Government says LPG supply under control for food processing sector

The LPG shortage affecting the food processing sector has raised concerns in recent weeks, but the government believes the impact remains limited for now.

“Right now, it is not that much of a concern. We need to keep an eye on the situation,” Paswan said during an industry event.

He added that the government is closely monitoring developments and will take additional measures if required.

Commercial LPG supply remains restricted

Commercial LPG supply for businesses remains constrained, with allocations capped at around 20% of average monthly consumption.

The government has prioritised household cooking gas supply following disruptions caused by the West Asia conflict.

This has affected several industries that depend on LPG as a primary fuel source.

LPG critical for food processing industry

LPG plays a key role in India’s food processing sector, powering equipment such as:

• industrial ovens

• fryers

• drying units

• sterilisation systems

These are used in the production of snacks, dairy products, biscuits, namkeen and packaged foods.

Any prolonged disruption in LPG supply could affect production continuity across these segments.

Industry remains cautious despite reassurance

Despite the government’s reassurance, industry participants continue to monitor the situation closely.

Supply disruptions have already raised concerns about operational efficiency and production timelines in food processing units.

Paswan said authorities will continue to assess the situation and respond if the conflict impacts supply chains further.

Market outlook

Analysts say the LPG shortage impact on the food processing sector remains manageable for now.

However, prolonged disruptions linked to the West Asia conflict could increase costs and affect output in processed food industries.

Market participants will closely track developments in fuel supply and geopolitical risks.