LPG Crisis: Only 10 Days of Packaging Stock Left — Now Milk and Food May Be at Risk Too
Story By -
Shaurya Thakur 2026-03-17 LPG Crisis, Gas Shortage 164
When the cooking gas crisis began in early March 2026, most Indians thought of it as a problem for restaurants and hotels. The commercial LPG cylinders used by dhabas, biryani houses, and office canteens ran dry first, forcing kitchens across the country to scramble for alternatives. Hyderabad restaurants switched to wood fires. Mumbai's BMC canteen ran out with one day's notice. JNU's food stalls cut their menus.
But what has emerged in the past few days is more alarming — the crisis has now reached the dairy industry. Milk packaging stock across India has fallen to roughly 10 days of supply, according to dairy owners in Maharashtra, who have issued urgent warnings that milk processing, pasteurisation, and packaging could be severely disrupted unless LPG supplies are restored in time.
The LPG crisis is no longer just about cooking. It has reached the food chain itself.
How Did India Get Here?
India consumes approximately 31.3 million metric tonnes of LPG annually — the second highest consumption in the world. Domestic production meets only about 40% of that demand. The rest — nearly 60% — comes from imports, the vast majority of which travel through the Strait of Hormuz.
When Operation Epic Fury began on February 28, 2026, and the Strait of Hormuz effectively closed, those supply lines were severed almost overnight. On March 4, QatarEnergy declared force majeure on several LPG shipments destined for India. Insurance premiums for tankers navigating Gulf waters surged by over 500%, grounding Indian state-owned carriers. Saudi Aramco's Juaymah facility — a key LPG source for India — suspended operations after attacks, cutting off an estimated 400,000 tonnes of scheduled shipments.
India produces about 90% of the LPG it can domestically — covering household demand at reduced levels — but the shortfall is enormous and growing. The government invoked the Essential Commodities Act on March 8 and directed all refineries to maximise LPG output by diverting every available propane and butane stream to the three Oil Marketing Companies. Production was increased by 28% within five days. But production at 28% above a base that covers only 40% of demand still leaves a massive gap.
The 25-Day Rule — And Why It Was Introduced
In response to panic buying and "phantom demand" — households pre-booking cylinders when their current one was still half full — the Ministry of Petroleum introduced a new rule on March 9: the minimum gap between LPG refill bookings was extended from 21 days to 25 days.
This was not a random administrative decision. The government estimated it had approximately a 10-day buffer stock in national reserves. The 25-day interval was designed to slow down the rate of draw-down from that reserve, stretching limited supply across the maximum number of genuine households. As of March 17, the government says the delivery cycle remains unchanged at 2.5 days from booking to delivery for domestic consumers — but the situation remains fragile.
The first Indian-flagged LPG tanker, the Shivalik, has reportedly reached Mundra Port in Gujarat with 45,000 metric tonnes of LPG aboard. The Nanda Devi is also en route. These arrivals provide some relief — but they represent a fraction of what India needs each month.
The Dairy Crisis — Why Milk Is at Risk
This is the development that has alarmed food industry analysts and state governments. LPG plays a critical role in the dairy supply chain that most consumers have never thought about.
Pasteurisation — the process of heating milk to eliminate harmful bacteria — requires sustained, controlled heat. Most Indian dairy operations, particularly small and mid-sized facilities, use LPG for this process. Without it, pasteurisation cannot happen at scale. Unpasteurised milk cannot be safely sold or distributed commercially.
Plastic packaging production — the thin plastic pouches that most urban Indians use to buy milk — requires LPG in the manufacturing process. Dairy owners in Maharashtra have warned that their packaging stock will last approximately 10 days. If that runs out, even pasteurised milk cannot be packaged for distribution.
The Moneycontrol report quoted dairy industry representatives saying the crisis "could escalate into a major issue within the next 10-12 days if gas supplies are not restored in time."
The implications are direct. Without milk packaging, milk from dairy farms cannot reach urban consumers. Milk spoilage increases. Prices rise as supply tightens. Farmers who cannot sell their milk face losses. Infants, elderly individuals, and hospital patients who depend on regular dairy supply face shortages.
What Is Affected Beyond Milk
The food system stress goes further than dairy. As Legal Service India documented in a detailed analysis, the crisis is now affecting:
Bakeries — bread, biscuits, and packaged foods require LPG in production. Small bakeries have warned of potential shortages if the crisis continues through the next two weeks.
Street food and restaurants — over 800 hotels and restaurants in Thane alone were staring at potential closure as of last week. Cities like Hyderabad, Mumbai, Delhi, Bengaluru, and Kolkata are all reporting commercial kitchen shutdowns or severe menu reductions.
Indian Railways catering — train food services have been advised to explore alternate fuels. The pantry car experience for millions of daily train passengers is already affected.
Wedding caterers and community kitchens — March and April are peak wedding season in India. Catering operations that serve hundreds at a sitting cannot easily switch fuels.
Crematoria — some crematoria in certain cities use LPG-powered furnaces and have reported supply strain, a detail so severe it barely registers in normal times.
The Government's Response
Petroleum Minister Hardeep Singh Puri assured Parliament on March 13 that domestic household supply is "fully protected" and that delivery cycles remain normal. The government has set up a 24x7 control centre under the Home Ministry and held high-level meetings with every major state's civil supply administration.
Twenty percent of monthly commercial LPG requirements is now being allocated to genuine commercial users — hotels, restaurants, and industrial kitchens — to prevent total shutdowns. States have been advised to permit alternative fuels including kerosene, biomass, and coal for commercial kitchens for the duration of the crisis.
The government is also activating kerosene through PDS channels and making fuel oil available for industrial consumers. These are stop-gap measures. The fundamental problem — the Hormuz closure — has not changed.
What You Can Do
The government and distribution companies have asked households to be mindful of their gas usage. Some practical steps that make a difference during the shortage:
Use pressure cookers and efficient cookware that reduces cooking time and gas consumption. Avoid using the gas burner on high flame when a medium flame will do. Do not keep a burner on while waiting for water to boil — use an electric kettle where possible. If you have an induction cooktop, now is the time to use it. (Note: induction cooktops themselves are currently sold out on most platforms — a second-order consequence of the crisis.)
For dairy consumers specifically: if you usually buy milk in 1-litre pouches, consider switching to loose milk from local vendors for a period, which does not require the plastic packaging that is now at risk.
This crisis — from the LPG shortage in Indian kitchens to the question of whether to switch to induction cooking — is one Nextgen Gpost has been tracking since the crisis began. The dairy angle is the newest and perhaps most worrying chapter so far. If milk packaging stock runs out in 10 days and the Hormuz remains closed, the grocery store shelf that is now missing cooking gas will next be missing milk.
The hope is that the tankers now en route — the Shivalik, the Nanda Devi, and others — arrive in time. The calendar says 10 days. The war in West Asia does not run on a calendar.
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