Dairy processors warn plastic milk packet production could halt within days as LPG shortages disrupt packaging manufacturing.
India’s dairy sector is facing a potential supply chain disruption as an ongoing LPG shortage threatens the production of plastic packaging used for milk distribution. Dairy operators warn that if the crisis continues, the availability of plastic milk packets could run out within about 10 days, putting pressure on daily milk deliveries in major urban markets.
The problem stems from the dependence of plastic packaging manufacturers on liquefied petroleum gas (LPG) to run production processes. With LPG supplies constrained, packaging factories are struggling to maintain output. This creates a bottleneck for dairy processors that rely heavily on plastic sachets to distribute fresh milk to consumers.
Dairy industry representatives say most processors maintain only limited inventories of packaging materials. Once those stocks are depleted, milk plants could face serious operational challenges, particularly in cities where packaged milk dominates retail distribution. The situation could affect both cooperative and private dairy processors.
Industry groups have urged authorities to prioritize LPG allocations for packaging manufacturers serving essential food sectors. Ensuring a steady supply of packaging materials is critical to maintaining the uninterrupted flow of milk, which is a staple product for millions of households.
For the dairy supply chain, the situation highlights the vulnerability of milk distribution systems to disruptions in upstream inputs such as energy and packaging materials. Analysts note that even short-term shortages in these supporting industries can ripple through the dairy market, affecting processors, retailers and consumers alike.
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