Packaged Food Firms Shift To Electric Heating, Biofuels Amid LPG Crunch From West Asia War

New Delhi: Packaged food companies are exploring alternatives such as electrical heating equipment and biofuels for running their kitchens as they brace for disruptions in LPG supplies triggered by the ongoing war in West Asia. Firms such as Balaji Wafers, Gopal Snacks, and contract food service provider Compass India said they are engaged with the relevant government bodies to tide over the situation, besides exploring the use of alternate fuels.

Balaji Wafers founder and managing director Chandu Virani confirmed receiving a notice for only half of the supply this month in Gujarat due to disruptions in gas supply in the aftermath of the US-Israel strike on Iran. "We are considering changing the fuel and using the liquid option. We will take a decision in the next two-three days," Virani told PTI.

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Apart from the fuel crisis, the packaging cost has also gone up as plastic prices have increased by nearly Rs 100 per kg. This may not only impact production, but also thousands of people who are employed, farmers supplying raw materials and other stakeholders, he added. Compass India Group, part of British multinational contract food service and facility management services provider Compass Group PLC, is closely monitoring the current situation around commercial LPG availability in certain markets.

"Our priority is to ensure uninterrupted food services across the sectors we service, including healthcare, education, manufacturing, GCCs, and corporate workplaces. We need to ensure continuity in operations so that in the overall outlook, people are taken care of, education continues to happen, and work continues to progress," said Compass Group India Chief Culinary Officer Chef Arjyo Banerjee.

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Operationally, it is "exploring alternate cooking methods, including increased usage of electrical equipment and bio-based fuels, to power steam systems in our central kitchens," he said. In some cases, Compass Group has deployed additional electrical equipment to support operations. "Wherever necessary, we are carefully preparing business continuity menus to optimise gas usage by limiting items that require prolonged cooking or higher fuel consumption, while ensuring meals remain safe, nutritious and balanced," he said.

Compass Group India has also set up a central dashboard to track impacted cities and sites, enabling us to respond in a targeted manner. Besides, it has also rolled out a "comprehensive operational guide" for its culinary teams to support "efficient menu planning and prudent fuel utilisation" and preparedness at the site level. Gopal Snacks said it is already using bio coal at its Modasa and Nagpur facilities, and its manufacturing facilities are running smoothly. It said the company will be able to serve its customers' demand without any interruption.

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Recently, the government of India has issued a notification on the restriction of usage of gas for commercial use due to tensions in West Asia, prioritising the same for domestic use. "Gopal Snacks has always been looking to focus on taking strategic steps to use alternative sources of fuel, making it more cost-effective and reducing the dependency on a single source of fuel to overcome any such unforeseen challenges," the company said in a regulatory filing.

Justdial, an online search platform for local services, said its data insights indicate a sharp surge in searches related to LPG and cooking gas services on its platform amid recent discussions around supply availability. "Comparing the period between February 28 – March 5, 2026, with March 6 – March 11, 2026, LPG-related searches across India have increased 3.5 times. Among key metros, Delhi recorded the sharpest spike with searches rising nearly six times, followed by Mumbai at four times, while Bengaluru and Chennai witnessed close to a three-fold increase in search activity during the same period," said Justdial. 

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