LPG Crisis: The increasing tension in the Middle East has created a situation of global crisis, the impact of which is now clearly visible on India’s food service sector. The main reason for this is the huge shortage of Liquefied Petroleum Gas (LPG). Due to blockage of Strait of Hormuz, the risk of LPG crisis in India getting worse has increased. If this war prolongs, there could be layoffs, salary cuts and serious impact on business.
How big a crisis?
Despite the government’s assurance of improving LPG availability, people associated with the restaurant and catering industry say that they are not getting adequate supply of commercial LPG cylinders.
Due to this, it is becoming very difficult for them to continue their operations. Many businessmen say that the situation is uncertain and it is not clear when the situation will return to normal.
Speaking to The Economic Times, restaurant owner Anjan Chatterjee said that at present there is a panic-like situation in the entire sector. He warned that if the situation does not improve, it will have the biggest impact on the lower level employees who work in this industry.
Who is most affected?
The biggest crisis is falling on small restaurants, roadside food shops, caterers and cloud kitchen operators. Many of these have already closed their businesses. At the same time, Sagar Daryani, President of National Restaurant Association of India, says that small businessmen are not able to bear the losses and they may be forced to face layoffs. Although big players can bear losses for some time, many aspects of their operations will be affected.
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