The ongoing LPG crisis has severely impacted biscuit and bread manufacturers, disrupting production across several units. A Parle-G facility in Khamgaon, Buldhana, has shut operations due to a shortage of cooking gas, while other units are functioning at significantly reduced capacity. Bread manufacturers, whose products have a shorter shelf life than biscuits, are particularly affected, sources said.
According to a media report, multiple biscuit manufacturing units have acknowledged the challenging situation. Sources from companies such as Haldiram’s, Dinshaws, and Ajit Bakery confirmed that the LPG shortage has disrupted bread production, a daily essential. In addition, packaging materials have either become scarce or significantly more expensive.
Packaging costs have risen due to the shortage of laminates made from petroleum-based polymers, with the Iran crisis affecting both availability and pricing.
In Nagpur, three major biscuit manufacturing units are facing production cuts. SAJ Foods, which produces the Bisk Farm brand, is currently operating its Butibori plant at just 30% capacity. The company, which runs multiple units across West Bengal, Bangalore, and Nagpur, has reportedly scaled down production across all locations. The Bangalore unit is managing operations using piped natural gas. Combined, these units typically produce around 14,000 tonnes of biscuits per month, a source said.
Another unit supplying a national brand has reduced output by nearly 70%, down from its usual production of 60 tonnes per day. Some factories are also facing shortages of key ingredients such as sodium bicarbonate and ammonium bicarbonate, sources added.
While production cuts in biscuits may take up to a month to impact consumers due to existing stock held by dealers, the situation is more immediate for bread, which is consumed daily. Vikram Diwadkar, director of Ajit Bakery, said bread production has been significantly affected. “Even during Covid-19 pandemic, bakers kept up production. However, currently it’s getting difficult. Even rates of laminates have gone up from Rs 230/kg to as much as Rs 289-300/kg taking up packaging rates,” he said.
A source at Dinshaws said bread production has declined by about 15%, although supply is being maintained. At Haldiram’s, management sources indicated that the impact has been more noticeable in restaurant operations, as alternative fuels are used in manufacturing units, though bread production has still been affected to some extent.
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