Mumbai's Milk Industry on the Brink as LPG Crisis Deepens
The ongoing LPG crisis in Mumbai is now threatening to disrupt milk distribution across the city, with dairies warning of severe shortages within days. Pasteurization processes, essential for milk safety, rely heavily on a continuous supply of fuel such as LPG or piped gas, which is currently in short supply. Compounding the issue, there is a palpable shortage of packaging materials, including milk pouches and polythene bags, as manufacturing industries struggle to access gas for production.
Dairies Sound Alarm Over Impending Shortages
Devendra Shah, founder chairman of Gowardhan Dairy, highlighted the severity of the situation, stating, "Milk pouches and cartons are not available because manufacturing industries are not receiving gas to produce these items. We have stocks only to last 10 days." Similarly, Sharib Shaikh, who manages Suresh Dairy in Chembur, expressed concerns, "There is a shortage of plastic bags, and if it continues, we will face a crisis in 10 days. All input costs, including transportation, have risen."
Bulk Buyers Reduce Consumption, Forcing Dairies to Sell at Loss
The crisis is exacerbated by reduced consumption from bulk buyers such as hotels, restaurants, and other institutional clients, many of which have slowed or halted purchases due to closures. C K Singh, chairman of the Bombay Milk Producers Association, shared a stark example, "On Friday, three bulk orders totaling 230 kg of buffalo milk were stopped. We are being forced to sell stock at half rate in the open market. Small dairies cannot even store more than a certain capacity. What do we do with the excess milk?"
Production of Milk Byproducts Hampered Ahead of Festive Season
Rishi Joshi of Shree Narayan Dairy in Vile Parle pointed out additional challenges, "We manufacture milk byproducts like basundi and shrikhand. Now Gudi Padwa is around the corner, which is a big occasion for business. But we are unable to make these items. I have installed an electric boiler to prepare paneer, still it is not an adequate replacement for gas." Several dairies across Mumbai have echoed these concerns, warning that the situation could worsen if the LPG scarcity persists.
Amul and Mother Dairy Provide a Silver Lining
Amid the turmoil, Amul, India's largest dairy, stands out as a beacon of stability. MD Jayen Mehta explained, "Amul handles 350 lakh litres of milk every day. Our dairy plants in Gujarat get 80% of the gas requirements. The balance energy requirements are being met by the use of LDO (diesel) and other fuel options. There is no disruption in supply of Amul milk or milk products because of this support from the government." He added, "We have no shortage of packing material. We manufacture our own packaging film for milk, dahi, and buttermilk pouches. It is almost five crore pouches each day."
A spokesperson for Mother Dairy also offered reassurance, stating, "Our milk pasteurization operation uses PNG and other fuels, and at present we do not foresee any shortage." However, for many smaller dairies in Mumbai, the future remains uncertain as they grapple with rising costs and dwindling supplies.
