Too Much On Their Plate: Caterers scramble as LPG cylinders run out amid West Asia conflict

New Delhi: Big fat weddings, iftar parties, five-star hotel menus—tight supplies of liquified petroleum gas (LPG) due to the Gulf war are disrupting all manner of occasions. Hotels, caterers and banquet halls are scrambling to secure additional cylinders, paying steep premiums or shifting to alternative fuels to keep things on track, while others say they are cutting back on elaborate menus.

“Wedding plans for the next few months are being disrupted as people are anxious that the shortage could well run into April and beyond,” said Anand Shahani, cofounder and chief executive of premium wedding planner platform WedMeGood. “However, for weddings that have already been fixed and guests invited, people are willing to pay significant mark-ups on the cost for LPG cylinders, as they don’t want to postpone or cancel elaborate preparations.”

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The economics of a wedding are not comparable to that of a restaurant meal.

“Unlike going out for a meal, a wedding event is once in a lifetime event for families,” he said. “Hence, scaling these down is not an option for many.”

April is one of the most auspicious months as per the Hindu calendar. India’s annual wedding industry is pegged at more than $130 billion, according to a recent report by investment banking firm Jefferies. And, with Ramadan having begun on February 19, this is the season for iftars, ahead of Eid on March 21-22, depending on the sighting of the moon.

“As we speak, I am trying to organise cylinders for a pre-planned luxury wedding. We are seeing so many event cancellations… from weddings to iftar gatherings to corporate events, and me and my team are facing a lot of hassle,” said Udit Sabharwal, founder of Salthouse Catering Services, a Delhi-NCR-based luxury wedding and event catering company. “How can anyone cook certain Indian cuisines such as dal makhani which are in high demand without gas cylinders?”

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The West Asia conflict has disrupted global energy supply routes. Most of India’s LPG imports come from the region. To be sure, the government has assured adequate LPG supplies. It has said that home consumption will be prioritised.

“We are not able to commit to wedding contracts,” said Kirit Budhdev, general secretary, Federation of All India Caterers. “For outdoor events of 400-500 people, we need at least 10-12 cylinders and our members are not even able to source one.”
With 90% of the catering business dependent on LPG, wedding functions are being called off and community meals at temples being scrapped. “This is a pan-India issue,” Budhdev said.

Executives at five-star hotels said they are pressing for more cold items in lunch and dinner buffets, restricting menus and moving to charcoal-based cooking, while working closely with suppliers to implement practical alternatives to optimise solutions without denting business. While branded star category hotels have gas banks running up to a few weeks, hoteliers said concerns about inadequate supply are emerging in markets such as Bengaluru, Goa and parts of Punjab. Standalone restaurant closures have also made them more cautious.

If supply constraints persist, the industry will likely accelerate the adoption of alternative energy systems and more flexible kitchen formats, said Nikhil Sharma, managing director and chief operating officer, South Asia, at Radisson Hotel Group.

Some hospitality markets have experienced temporary LPG supply constraints over the past few days, particularly in a few regional markets and high-demand urban centres where demand from the restaurant ecosystem is significant, he said.

“While this has created short-term pressure for certain standalone outlets in the wider market, hotels have largely been able to manage the situation through advance planning and diversified kitchen infrastructure,” Sharma said.

Executives at two luxury hotels in the national capital said while there have been no changes in menus and prices so far, and they have adequate supplies for now, alternative options for cooking are being discussed. “This is a national crisis and everybody is very cautious. So far, no red flags have been raised but the uncertainty is the concern,” said one of the executives.

The shortages are being highlighted across sectors, even schools.

A notification by Shriram School, Gurgaon, addressed to parents said the school’s caterer “will not be able to procure the required quantity of LPG, to run the school’s lunch and snacks programmes.” It asked parents to make alternate arrangements for next week. The notice said the vendor will not be able to provide lunch and snacks starting March 16, unless the situation improves.

Hoteliers said teams are optimising LPG consumption by increasing the use of electric and induction-based cooking equipment besides exploring sustainable cooking formats.

“Kitchens are also reviewing menu engineering, prioritising dishes that can be efficiently prepared through electric ovens, induction ranges, or pre-prepared components without compromising guest experience,” said Radisson’s Sharma.

The crisis is being “deeply felt” across the country, said Manbeer Choudhary, CMD at Noormahal Group, which runs the Noormahal Palace Hotel in Haryana, popular for destination weddings. "Community kitchens are limiting meal services, small hotels are navigating supply restrictions and citizens everywhere are feeling the sting of rising costs,” Choudhary said.