Gas Shortage Hits Restaurants, Dampens Sugar and Edible Oil Demand in India
India is witnessing a decline in the consumption of sugar and edible oils as a severe shortage of commercial LPG cylinders disrupts restaurant operations across the country. Many eateries, especially roadside stalls and small restaurants, have been forced to cut back or temporarily shut down during the peak summer and wedding season, leading to reduced demand for cooking ingredients.
The shortage has significantly impacted edible oil usage, with imports dropping by nearly 9% in March to around 1.2 million tonnes. Industry experts, including officials from the Solvent Extractors’ Association of India, noted that reduced frying activity for popular foods like samosas and chole bhature has contributed to the decline. The situation may also lower India’s imports of palm oil, soybean oil, and sunflower oil from key global suppliers.
The crisis stems from constrained LPG supplies, as India—one of the world’s largest importers of cooking gas—relies heavily on shipments from the Middle East. With the government prioritizing household consumption, commercial users are facing shortages, affecting both the food service sector and sugar demand. According to the National Federation of Cooperative Sugar Factories Ltd, the disruption comes at a time when demand typically rises, further impacting businesses reliant on seasonal consumption.
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