Cold stoves, skeletal menus: Uncertain future for restaurants as LPG shortage hits industry
New Delhi/Chennai (PTI): Shrinking menus, cold stoves and dining out suddenly not so easy. The West Asia conflict is knocking at restaurant doors across India with the looming threat of commercial LPG shortage forcing eateries to innovate -- quickly -- or face a shutdown.
As the expanding war disrupts global fuel lifelines, including India's LPG supplies, the government has prioritised domestic cooking gas supply to households, leading to a supply crunch for hotels and restaurants which use commercial LPG.
The prospect of shuttered kitchens, lost jobs and many people dependent on outside food forced to think about where they will get their next meal is very real, said industry insiders as they prepare to tackle the crisis.
Closure could be just days away for many establishments.
Desperate make do measures include low fuel menus, food that can be cooked on electrical appliances and limiting sales of everyday staples like pooris, dosas, tea and coffee. From Delhi to Chennai and Mumbai to Kolkata, the stories came in from all over.
Many restaurateurs in Tamil Nadu, for instance, expected their existing stock of LPG to last for one or two days and said they were forced to cut down on their menu.
"It is like a second COVID-19-enforced lockdown for us… For dosa, tea or coffee, the stove should receive LPG supply non-stop," the head of a popular restaurant chain told PTI on condition of anonymity about the popular dishes that keep his business going.
"We expect to run for one or two days with existing stock. If there is no supply of commercial LPG cylinders, we have no other option but to close down operations,” he added.
Another popular hotel in Chennai has also tweaked its menu.
"We have stopped preparing fried rice, side dishes, and appam as these items require more LPG. We do not know how long this (supply crisis) will continue," said an executive.
Indian Hotel & Restaurant Association (AHAR) president Vijay Shetty said 20 per cent of hotels in Mumbai have closed due to the short supply of LPG cylinders.
Maharashtra Food and Civil Supplies Minister Chhagan Bhujbal warned in a statement that “commercial LPG supply may decrease in the coming days as oil companies have been directed by the Centre to prioritise domestic consumers”.
Piyush Kankaria, head of the National Restaurant Association of India’s Kolkata chapter, told PTI that the city has nearly 5,000 restaurants and a quick survey among members indicated that many establishments are already running out of cooking fuel.
"About 40 per cent of restaurants have indicated there will be immediate disruption, while another 30-40 per cent said they can run operations only for a few more days as they have limited stock," he said.
In Delhi, Joy Singh, co-founder of restaurant chain Raasta, told PTI the situation in the city appears relatively stable compared with some other major cities but it has started exploring alternatives to reduce LPG dependence.
“We have started making arrangements and are buying electrical appliances for cooking. We may also make a few changes in the menu so that we can save as much gas as possible,” he said.
Restaurant operators in the national capital also noted that outlets using piped natural gas have not yet faced major disruption but pressure has reduced from about 20 per cent to 18 per cent and it may decrease further.
Arjun Sagar Gupta of The Piano Man added that restaurants may have to temporarily adapt by relying more on electric equipment wherever possible.
“However, that transition is not always seamless, as some cooking techniques and menu items are specifically designed for gas-based cooking,” he said.
Amit Gupta, joint secretary of the New Delhi Traders’ Association, agreed. He also added that eateries may also have to remove certain dishes from their menus as not all cuisines can be prepared using electrical appliances.
Indian dishes like dal makhni, rajma, biryani, nihari, and qorma, for instance, are slow-cooked for hours on low heat to bring out their flavours.
In Bengaluru, where the Bangalore Hotels Association warned on Monday that many restaurants were facing closure, hotelier Chandrashekhar Hebbar said the situation was serious.
"It has reached that level now -- to the point where closure is being considered. For now, everyone is trying to manage by reducing gas consumption and adjusting things, but that can be done only for a day or two. After that, it will not be possible," Hebbar told PTI.
He said several items were already being curtailed to conserve gas. "We have stopped serving some items. Things like pooris have been controlled. The government must take immediate action on this," he added.
Similar sentiments were shared by restaurant owners in major city centres, including Kolkata, Puducherry, Lucknow and Bhubaneswar.
Deepti Pandey, owner of Lucknow-based Kakke Di Hatti, admitted that they were about to run out of commercial gas supply.
"I think we may barely have enough reserves to last a couple of days after which we too may have to temporarily close down," Pandey said.
Kishor Kumar, owner of Durga Ma Gas agency in Lucknow's Gomtinagar told PTI that dozens of restaurants had already closed down temporarily or are about to do so. “My phone is ringing continuously but what can we do," he said.
Some hotels in Puducherry have moved to “low fuel” menus.
"We have now introduced sales of coffee, tea or juice only between 4 pm and 7 pm instead of usual sales of tiffin items," said a restaurant owner in the seaside town.
In Odisha, the Hotel & Restaurant Association of Odisha (HRAO) sought Petroleum Minister Hardeep Singh Puri's intervention.
If the situation continues, it may lead to closure of hotel operations, cancellation of bookings, and severe inconvenience to tourists and visitors, warned HRAO chairperson J K Mohanty. About 50,000 persons working in the industry in Odisha could also lose their jobs, he told reporters.
On the other side of the restaurant eco-system are those who depend on it for their daily meals.
India consumes about 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants.
Of this total requirement, as much as 62 per cent is met through imports. The US-Israel's attacks on Iran and Tehran's retaliation have shut the Strait of Hormuz, a key sea route through which India gets 85-90 per cent of its LPG imports from West Asian nations, including Saudi Arabia and Qatar.
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Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
