Ice cream manufacturers across Gujarat are preparing for a potential shortage of ice cream cones and packaging materials as disruptions in gas supplies begin to affect production. The issue comes at the onset of the summer season, which is the most crucial sales period for the ice cream industry, and companies fear the situation could worsen in the coming months if gas availability does not improve.
Industry leaders say the supply crunch is already visible, with cone manufacturers cutting production due to limited access to gas, a primary fuel used in cone baking and several related processes. As a result, prices for cones and other materials have already begun rising, and experts warn that retail ice cream prices may increase by around 10 percent by April.
According to Bhupat Bhuva, chairman of the Gujarat Ice Cream Association, the impact of the gas shortage is gradually spreading across the supply chain. He noted that most ice cream companies source cones from specialized manufacturers rather than producing them in-house. Due to reduced production and rising input costs, prices of cones and other packaging materials have increased by up to 20 percent in recent weeks.
Cone production has been particularly affected because nearly all manufacturers in this segment rely on gas-fired equipment to bake wafer cones. With gas supplies tightening amid geopolitical tensions in the Middle East, production output has dropped, raising concerns about whether suppliers will be able to meet the surge in demand during peak summer months.
Himanshu Kanwar, CEO of Vadilal Industries Ltd, said the industry began noticing the impact of gas shortages just as the summer season started. He emphasized that more than half of the company’s annual sales occur during this period, making any supply disruption particularly worrying.
Kanwar explained that cone manufacturers are facing reduced production capacity due to limited gas availability. Many suppliers have expressed concerns that if the situation continues, they may struggle to supply sufficient quantities of cones to ice cream brands throughout the season. In addition to cones, the supply of packaging materials is also being affected because several production processes depend on consistent gas supply.
The challenges extend beyond cones. Industry estimates suggest that about 25 percent of ice cream-related products rely directly on gas in their manufacturing process. This includes items such as ice cream cakes, bakery products, and certain dessert bases. Dry fruit roasting, an essential step for many premium ice cream flavors, is also gas-dependent and could face disruptions if shortages persist.
Manufacturers say the shortage is already affecting procurement costs. Ankit Chona, managing director of Hocco Ice Cream, said the cone segment has experienced a clear impact from the gas supply crunch. Suppliers, operating with reduced production capacity, have raised prices for new orders by as much as 25 to 30 percent.
Chona added that rising costs are not limited to cones alone. Several raw materials used in ice cream production have become more expensive compared with last summer. On average, input costs have risen by around 10 percent, and manufacturers may have little choice but to pass part of this increase on to consumers through higher retail prices.
However, not all companies expect major disruptions. The Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets the Amul brand, has indicated that it is well prepared to manage the situation. Jayen Mehta, managing director of GCMMF, said the company has sufficient internal manufacturing capacity and does not foresee any major supply problems.
Industry sources point out that Amul has strengthened its in-house production capabilities in recent years. Surat-based Sumul Dairy, which is part of the GCMMF network, invested approximately ₹50 crore in 2024 to set up a dedicated ice cream waffle cone manufacturing facility. The plant has an annual capacity of around 10 crore cones, helping the cooperative reduce its dependence on external suppliers.
In addition to the Sumul facility, Amul also sources cones from Anand-based Kaira Can Company Limited, which operates one of the oldest cone manufacturing divisions in Gujarat.
Despite such internal capacities among larger players, smaller and mid-sized ice cream brands remain more exposed to supply chain disruptions. For many of them, reliance on third-party cone manufacturers means that continued gas shortages could translate into tighter supplies and higher costs during the peak demand season.
With temperatures rising and demand for frozen desserts expected to surge in the coming weeks, industry players are closely monitoring the situation. If gas supplies remain constrained, manufacturers warn that cone shortages, higher production costs, and price increases could become a defining challenge for the ice cream sector this summer.
