LPG crisis leaves biscuit & bread makers crumbling The ongoing LPG crisis has severely disrupted operations for biscuit and bread manufacturers across India, with several units forced to reduce production or shut down entirely. A Parle G facility in Khamgaon, Buldhana, has been closed due to a shortage of cooking gas, while other units are operating at drastically reduced capacities. Even companies producing bread, which has a shorter shelf life than biscuits, are struggling to maintain normal operations, according to industry sources. The crisis has created a ripple effect throughout the supply chain, impacting packaging materials and increasing costs. Laminates used for packaging, made from petroleum-based polymers, have become scarce or prohibitively expensive. This has forced manufacturers to seek alternative solutions, such as using piped natural gas in some units. For example, the Bangalore unit of SAJ Foods, which produces the Bisk Farm brand, is operating at 30% capacity, while its other units in West Bengal, Bangalore, and Nagpur have seen production slashed significantly. In Nagpur, three major biscuit manufacturing units are affected. SAJ Foods, which normally produces 14,000 tons of biscuits monthly, is now operating at a fraction of its capacity. Another unit producing for a national brand has reduced output by 70%, cutting daily production from 60 tons to a much lower level. Shortages of essential food chemicals like sodium bicarbonate and ammonium bicarbonate have also been reported, further complicating production. The impact on bread-making is particularly acute. Vikram Diwadkar, director of Ajit Bakery, noted that bread production has been severely affected, with laminate prices soaring from Rs 230/kg to Rs 289-300/kg. This has increased packaging costs, squeezing profit margins.#lpg_crisis #khamgaon #parle_g #buldhana #saj_foods
Parle-G biscuit production halts at Khamgaon unit A factory in Khamgaon, operated by Shivangi Bakers—a unit manufacturing Parle-G biscuits and cream products under a job-work arrangement—has suspended operations for the past five days due to a severe shortage of LPG. Factory owner Abhay Agrawal stated that the facility’s two large industrial ovens, which rely entirely on LPG for production, have been unable to function since March 11 following disrupted gas supplies. The shutdown has affected more than 500 workers employed at the site, with management currently paying them half their salaries. Agrawal warned that a prolonged disruption could jeopardize both the livelihoods of employees and the future of the factory. The unit typically consumes around three metric tonnes of LPG daily to produce 60 tonnes of Parle-G biscuits and 20 tonnes of strawberry cream. These biscuits are distributed across the Vidarbha region. Agrawal noted that the factory’s production capacity is significant, but the ongoing LPG crisis has brought operations to a standstill. Inside the facility, stacks of empty commercial gas cylinders were observed, highlighting the severity of the supply crunch. Workers’ representatives have appealed to Maharashtra’s state minister for labour and the local BJP MLA, Akash Fundkar, to intervene and restore gas supplies. Labour representative Deepak Haridas Sultane emphasized the urgency of government action to prevent a prolonged shutdown. The situation underscores the critical role of LPG in industrial operations and the vulnerability of manufacturing units to supply chain disruptions. The LPG shortage has broader implications, affecting not only the factory but also other sectors reliant on the gas.#shivangi_bakers #khamgaon #abhay_agrawal #vidarbha #maharashtra_labour_minister
