Gujarat Ice Cream Industry Braces for Cone Shortage Amid Middle East Conflict Gas Disruption
Ice cream manufacturers in Gujarat are preparing for a significant cone shortage during the peak summer season, driven by disruptions in gas supplies linked to the ongoing Middle East war. This crisis is affecting cone and packaging production across the state, with industry leaders warning of tightened supplies and price hikes.
Impact on Production and Pricing
The shortage has emerged at the start of summer, a critical period for the industry, with some companies predicting further tightening in the coming months if conditions do not improve. Retail ice cream prices are expected to rise by approximately 10% in April due to increased costs.
Bhupat Bhuva, chairman of the Gujarat Ice Cream Association, stated, "Cone and packaging materials have started witnessing the impact of gas supply cuts. Most companies source cones from other suppliers, and there is a price rise of up to 20% in different items."
Cone production has been particularly hard-hit because manufacturers rely on gas as fuel. Lower gas availability has reduced output, raising concerns about meeting summer demand.
Industry Executives Voice Concerns
Himanshu Kanwar, CEO of Vadilal Industries Ltd, explained, "The industry has started observing the impact of short gas supply just at the beginning of the summer season, which contributes more than 50% to annual sales. All cone manufacturers use gas as their fuel, and in the current situation, their production has decreased. They fear they will not be able to supply cones in the coming months if the situation does not improve. Similarly, packaging material supply is also affected."
For ice cream manufacturers, about 25% of products depend on gas, including cones, ice cream cakes, and bakery items. Dry fruit roasting, another gas-dependent process, is also expected to be impacted.
Ankit Chona, MD of Hocco Ice Cream, added, "There is a clear impact of gas supply shortage in the cone segment. For new orders, suppliers have increased prices by up to 25-30% as they are running on low production. Ice cream prices will be affected because most raw materials have become costlier by an average of 10% compared to last summer."
Exceptions and Mitigation Efforts
Not all companies anticipate disruption. Amul has indicated it has sufficient internal capacity to avoid shortages. Jayen Mehta, managing director of the Gujarat Co-operative Milk Marketing Federation (GCMMF), said, "We have enough in-house manufacturing capacity, and we do not foresee any problems."
Sources revealed that Surat-based Sumul Dairy, part of GCMMF, invested Rs 50 crore in 2024 in an ice-cream waffle cone facility with a capacity of 10 crore cones per annum. In addition to Sumul's plant, Amul also relies on the manufacturing facility of Anand-based Kaira Can Company Limited, which houses one of the state's oldest cone divisions.
The situation highlights the broader economic ripple effects of geopolitical conflicts, with local industries in Gujarat facing operational challenges during a crucial sales period.
