Restrictions on commercial LPG supply in Madhya Pradesh have disrupted dairy processing operations, particularly in the Indore region, forcing operators to cut milk procurement from farmers and scale down production of value-added products such as mawa, paneer and sweets.
The shortage of LPG—an essential fuel for milk processing—has reduced plant operating capacity, leading to a decline in milk collection volumes and creating supply chain bottlenecks across affected areas. In response to the crisis, some dairy businesses in the Bhopal region have begun shifting to electric appliances to sustain operations, highlighting the sector’s dependence on stable energy supplies.
The disruption is part of a broader LPG supply prioritisation framework where commercial users, including dairies, face reduced allocations, intensifying operational challenges. Industry observers note that the curbs are impacting both processors and farmers, as reduced procurement limits milk offtake, raising concerns over income losses and potential wastage at the farm level.
Source: Dairynews7x7 21st March, 2026 Read full story here
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