Union Minister for Food Processing Industries Chirag Paswan on Tuesday, 17th March, said that the recent shortage of commercial LPG is “not that much of a concern now” for the food processing industry, even as the government continues to closely monitor the situation amid the ongoing crisis in West Asia.
Speaking to reporters on the sidelines of an event organised by ASSOCHAM, Paswan said the government has taken precautionary steps to manage supplies, but the situation remains under control at present.
“Right now, it is not that much of a concern. Yes, precautionary steps are being taken, but we need to keep an eye on the situation,” the minister said. He added that the government is closely watching developments related to the conflict in West Asia, which has affected global energy supply chains.
Commercial LPG supply to industries has reportedly been restricted to around 20 per cent of their average monthly consumption, as the government has prioritized domestic household cooking gas to ensure an uninterrupted supply to consumers. The move has raised concerns among food processing companies that rely heavily on LPG for manufacturing operations.
Paswan, however, sought to reassure the sector, stating that the government is prepared to take further measures if the geopolitical situation worsens.
“I assure you that as of now, the situation is under control. But we need to keep a watch on the war situation. If it continues, then definitely further steps will need to be taken,” he said.
LPG is a critical fuel for the food processing industry, used in a wide range of operations including frying, baking, drying, sterilization and heating processes in factories producing snacks, namkeens, biscuits, dairy products and packaged foods. Any prolonged disruption in supply could affect production schedules across several segments of the processed food sector.
Industry stakeholders have been closely tracking the situation, but the government’s latest assurance has provided temporary relief to manufacturers concerned about possible supply constraints.