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
