LPG Shortage Forces Migrants To Leave Mumbai, Hits Industry
The ongoing LPG shortage in India is starting to have significant socio-economic effects, particularly as migrant workers in Mumbai begin to return to their hometowns. A recent report revealed that nearly half of the migrant workers surveyed at railway stations cited the unavailability of cooking gas as a primary reason for leaving the city.
This crisis is not only affecting households but also causing severe disruptions to industrial operations. In Coimbatore, the foundry sector is facing the possibility of shutdown due to rising LPG prices and supply issues. K. Veluswami, chairman of the Indian Institute of Foundrymen, emphasized that LPG is essential for processes such as core baking, ladle preheating, and heat treatment.
The shortage has created a complex crisis for micro, small, and medium enterprises (MSMEs). In addition to the lack of LPG, the cost of essential industrial inputs, such as carbides, lubricants, packaging materials, and petroleum-based chemicals, has increased significantly. As a result, production has become economically unviable for many businesses.
Labor issues have further exacerbated the situation. Many migrant workers, especially those living in hostels, are struggling to find regular meals due to the lack of cooking fuel. This has driven them to leave their jobs and return home, leading to workforce shortages in industrial hubs.
The disruption in foundry operations is expected to have a ripple effect on multiple sectors, including automotive, pumps, compressors, valves, and engineering industries. Companies are already reporting delays in production and export commitments, with some considering more expensive alternatives like air freight to meet deadlines.
Industry associations are urging the government to ensure a steady supply of LPG, stabilize input costs, and support a transition to alternative fuels such as piped natural gas (PNG). Without immediate action, this crisis could result in significant economic and supply chain disruptions across the country.
