Industries in Belagavi's Udyambag Industrial Estate are grappling with a deepening crisis driven by an acute shortage of LPG cylinders, a sharp escalation in raw material prices, and a steady exodus of migrant workers. These combined pressures have forced several manufacturing units to scale down operations, fueling fears of partial or complete shutdowns.
Gas Shortage Hits Production Lines
Industrialists report that irregular LPG supply has severely disrupted operations, particularly in gas-dependent sectors such as powder coating and metal processing. Many units that rely entirely on LPG have been compelled to halt sections of their production lines intermittently, reducing output and delaying order execution. This has affected client confidence and strained cash flows, according to manufacturers.
Raw Material Prices Squeeze Margins
The situation has been aggravated by a steep rise in input costs. Prices of steel and allied raw materials have climbed sharply over the past year, significantly increasing production expenses. Prabhakar Nagarmunnoli, president of the Belgaum Chamber of Commerce and Industries (BCCI), stated: "Raw material prices have gone up by 10% to 30% in a year, making it financially unviable to operate at full capacity." Several units have suspended operations in select departments to minimize losses.
Migrant Worker Exodus Worsens Slowdown
Compounding the crisis is a growing labor shortage as migrant workers return to their home states. Of the nearly 10,000 workers employed in Udyambag, a large number—mainly from Uttar Pradesh and Bihar—are leaving amid job uncertainty, fewer working days, and rising living costs. This manpower crunch has further slowed industrial activity.
Cost-Cutting Measures and Falling Turnover
Many factories have cut production from three shifts to two, while others have sharply reduced output due to workforce constraints. The slowdown has led to declining turnover across units, tightening financial pressure on small and medium enterprises.
Nagarmunnoli noted that global instability and supply chain disruptions have intensified the challenges. "The spike in steel and other input costs, coupled with LPG shortages, has put enormous pressure on manufacturers," he said.
The BCCI has written to the state and central governments seeking immediate intervention. Industry representatives have urged authorities to ensure uninterrupted LPG supply, stabilize raw material prices, and announce relief measures to sustain operations. "Without timely support, the situation in Udyambag could worsen further," Nagarmunnoli cautioned.
