LPG Shortage Impact: The gas shortage has affected not only packaging but also milk demand. Hotels, restaurants, and wholesale customers have reduced milk orders. Sharib Shaikh, manager of Suresh Dairy in Chembur, said that if the situation doesn't improve in the next 10 days, the entire dairy industry could face a major crisis.

LPG Crisis: The energy crisis deepened due to the Iran-US war is now threatening your milk supply and morning tea, not just your kitchen budget. Several dairy owners in Maharashtra have warned that the LPG shortage is severely impacting milk processing, pasteurization, and packaging. This could impact milk supply in the coming days.

To preserve milk, it must be heated to a certain temperature, or pasteurized, which consumes significant amounts of energy. Due to the irregular supply of gas, preventing milk spoilage has become a major challenge for small and medium-sized dairies.

The packets will expire in 10 days.

The biggest challenge facing the dairy industry is the shortage of plastic milk packets and cartons. Milk packaging factories are not receiving adequate gas, slowing production. Devendra Shah, founder of Govardhan Dairy, said that they currently have only 10 days' worth of packaging material. If supply doesn't return to normal soon, milk supply will become difficult.

Sharib Shaikh, manager of Suresh Dairy in Chembur, also confirmed that if the situation does not improve in the next 10 days, the entire dairy industry could face a major crisis.

Demand from hotels has decreased, milk is being sold at a lower price.

The gas shortage has affected not only packaging but also milk demand. Hotels, restaurants, and wholesale customers have reduced milk orders because they themselves are shortening menus due to the LPG shortage. According to CK Singh, president of the Bombay Milk Producers Association, three large orders for buffalo milk were recently canceled. Small dairies lack the capacity to store milk, so they are forced to sell cow and buffalo milk at lower prices.

Will Amul and Mother Dairy also be affected?

The saving grace is that the country's largest dairy cooperative doesn't appear to be significantly impacted by this crisis. Amul MD Jayen Mehta stated that 80% of their gas needs are being met, and the remaining shortfall is being met with diesel and other fuels. Furthermore, Amul manufactures its own packaging, so they don't face a packaging shortage. Mother Dairy is also using PNG and other alternative fuels at its processing centers, which has kept their supplies stable.

 PC:Money Control