Gas Crunch Slows Milk Pouch Production

An ongoing LPG supply crunch has begun to affect milk packaging and distribution in Mumbai, with dairies warning that shortages of gas and packaging materials could disrupt supply if the situation continues. Dairy operators say that pasteurisation requires a continuous supply of fuel such as LPG or piped gas, and the crisis has also affected the production of milk pouches and polythene packaging materials, which depend on gas-powered manufacturing units.

According to Devendra Shah, founder-chairman of Gowardhan Dairy, packaging manufacturers are not receiving adequate gas supplies, resulting in shortages of milk pouches and cartons. He noted that existing stocks of packaging material could last only about 10 days. Dairy operators such as Sharib Shaikh, who manages Suresh Dairy in Chembur, also reported shortages of plastic bags and rising input costs including transportation, warning that the crisis could intensify if gas supplies do not improve.

At the same time, reduced demand from bulk buyers such as hotels and restaurants has forced some dairies to sell excess milk at lower prices in the open market. C.K. Singh, chairman of the Bombay Milk Producers Association, said three bulk orders totaling 230 kg of buffalo milk—including individual orders of 150 kg, 50 kg and 30 kg—were recently cancelled, leaving dairies with excess milk they are sometimes forced to sell at half the usual rate due to limited storage capacity.

Producers of milk-based products are also affected. Rishi Joshi of Shree Narayan Dairy in Vile Parle said preparations for products like basundi and shrikhand ahead of Gudi Padwa have slowed because of gas shortages, even though some dairies have tried using electric boilers as a temporary alternative.

However, larger dairies appear less affected. Amul, which handles about 350 lakh litres of milk daily, said its plants in Gujarat receive around 80% of their gas requirements, while the rest is met using diesel (LDO) and other fuel options. The company also manufactures its own packaging film, producing nearly five crore milk pouches every day, ensuring no disruption to supplies. Mother Dairy said its pasteurisation facilities rely on piped natural gas and other fuels, and it currently does not foresee shortages.

Source: Dairynew7x7 15th March, 2026 Read full story here

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