Iran-Israel conflict disrupts LPG supply, Karnataka’s KMF fears major impact on milk products, sweets and festive demand
Bengaluru: In a major setback ahead of the Ugadi festival, Nandini products may face severe supply disruptions within the next two days, as the Karnataka Milk Federation grapples with an acute shortage of commercial LPG cylinders. The crisis, triggered by global tensions linked to the Iran-Israel conflict, has begun affecting production units across Bengaluru and other parts of the state.
Officials confirmed on March 19 that existing gas reserves will last only for two more days, raising concerns that the production of key Nandini items, especially sweets and savouries, could come to a halt if fresh supplies are not secured immediately.
Ugadi Festive Demand Under Threat
The timing of the crisis is critical, as Ugadi celebrations typically witness a surge in demand for dairy-based sweets and products. With LPG supply disrupted for the past few days, KMF units are operating under pressure, and any further delay could significantly impact festive sales.
“If LPG supply is not restored immediately, we may be forced to limit production of several Nandini products,” KMF officials warned.
The federation has urged the government to intervene urgently and ensure an uninterrupted supply of commercial cylinders to avoid large-scale disruption.
LPG Shortage Hits Production Capacity
KMF typically consumes around 450 commercial LPG cylinders per month for processing milk and manufacturing its wide range of products. However, recent supply constraints have left production units struggling to maintain normal output levels.
The shortage may lead to reduced availability of popular items like curd, butter, ghee, buttermilk and Nandini sweets, directly affecting consumers across Karnataka and neighbouring states.
KMF’s Massive Market at Risk
The Karnataka Milk Federation is the second-largest milk cooperative in India and the largest in South India, with an annual turnover estimated between Rs 25,000 crore and Rs 30,000 crore. The federation collects around 85–90 lakh litres of milk daily, out of which over 40 lakh litres are sold directly, while the rest is processed into value-added products.
With a strong presence in Tamil Nadu, Andhra Pradesh, Telangana and Goa, and exports to international markets including the Middle East, Singapore and the United States, any disruption could have wide-ranging economic implications.
Over 140 Products and Crores in Daily Transactions at Stake
Nandini manufactures more than 140 products, with lakhs of daily transactions at its outlets. During peak festive seasons like Ugadi and Diwali, daily turnover surges to crores, making the current crisis particularly alarming.
Industry experts warn that if the LPG shortage persists, it could lead to supply chain disruptions, price fluctuations and reduced availability, dampening festive celebrations across the state.
