Commercial LPG Shortage Cripples Odisha's MSME Sector, Forces Production Cuts
A severe shortage of commercial LPG cylinders is now significantly impacting micro, small and medium enterprises (MSMEs) across Odisha, compelling many businesses to adopt a cautious and restrained approach to their production schedules. This fuel crisis is particularly acute in industrial clusters located within Khurda and Cuttack districts, where operations are slowing down due to limited or complete unavailability of essential LPG supplies.
Engineering and Fabrication Units Bear the Brunt
Industries that depend heavily on LPG for critical processes such as heating, soldering, welding, casting, and various engineering fabrication tasks are experiencing notable operational disruptions. On average, a medium-sized MSME requires at least two commercial LPG cylinders daily to maintain normal production levels. However, numerous operators report being unable to secure cylinders for one to two days, forcing them to ration existing stocks to prioritize only the most urgent customer orders.
Satwik Swain, the Secretary General of the Odisha Assembly of Small and Medium Enterprises, confirmed that while LPG is technically available, the supply is severely constrained. "The engineering segment is predominantly LPG-intensive. There is a palpable shortage, as manufacturing units that typically need two cylinders are receiving only one, necessitating strict rationing of usage. Although the situation has stabilized for now without further deterioration, continued stalemate over the next few days will inevitably impact operational efficiency and output," he explained.
Costly Alternatives and Production Standstills Emerge
In response to the limited LPG supply, some enterprises have begun exploring alternative fuel sources, but these adjustments are leading to increased production costs. SK Mallick, founder of one of Odisha's oldest boiler manufacturing companies based at the Khapuria Industrial Estate in Cuttack, revealed that his firm has been unable to book any LPG cylinders since Friday.
"Our plant has shifted to using dissolved acetylene (DA) as a substitute for LPG, but this transition has substantially raised our operational expenses. Years ago, when MSMEs widely adopted LPG, DA production facilities scaled back significantly. Now, with this LPG crisis emerging, DA factories are struggling to meet the sudden surge in demand for fuel gas. Since DA is more expensive than LPG, our manufacturing costs are escalating, yet we cannot halt production as it would adversely affect our business and the livelihoods of 65 workers at the plant," Mallick stated.
For other units where alternative fuels are financially unfeasible, production has come to a complete standstill. One such manufacturing unit in Balikuda, which specializes in producing medical and office furniture, has been forced to suspend operations for two days due to an inability to procure the cylinders necessary for its fabrication work.
Sk Saleem, owner of the affected unit, lamented, "We had a substantial order from an educational institution that has now been shelved indefinitely. Workers are sitting idle in our unit. We are being informed that some LPG cylinder supply might resume next week, but until then, all work remains on hold."
Increased Demand for Alternative Services
The ripple effects of the LPG shortage are also evident in increased demand for substitute services. Jaya Prakash Biswal, an entrepreneur whose company manufactures industrial machinery at the Indranipatna estate in Choudwar, noted a significant rise in requests for 'plasma cutting' services at central facilitation centers, as businesses seek alternative methods to cope with the fuel scarcity.
This ongoing commercial LPG cylinder shortage underscores the vulnerability of Odisha's MSME sector to supply chain disruptions, highlighting urgent needs for stable fuel access to sustain industrial growth and employment in the region.
