LPG Shortage Cripples MSMEs, Production Halts: Industry Leaders Warn of Economic Impact

• LPG supply disruption is causing widespread production issues across MSMEs, leading to cascading effects on supply chains.
• Commercial LPG supply to MSMEs has been completely stopped since March 9, impacting units that are 100% dependent on it.
• Firms are cutting production by up to 40% to avoid complete shutdowns, impacting profitability due to high spot market prices for fuel.
• MSMEs contribute significantly to India's GDP (31%), manufacturing output (35%), and exports (48%), making the disruption critical.
• Limited alternatives exist, with only 10-15% of industries having electric substitutes; faster implementation of piped natural gas is anticipated.