The impact of the ongoing tension in the Middle East is now clearly visible on Indian industry. Especially the glass industry has been badly affected, due to which there is a shortage of bottles, flasks and other glass items across the country.
Companies troubled by shortage of raw materials
Shishir Sathyan, co-founder of Bengaluru-based startup Mossant Craft Kombucha, says that for the last one month he has not been able to get glass flasks for his premium drinks. According to him, there is nothing to buy in the market right now. The demand for drinks increases rapidly during the summer season, but at this time the shortage of glass has increased the problems of the companies. To handle rising costs, many companies are now planning to reduce spending on marketing and discounts.
LPG-LNG shortage affecting production
The glass industry in India is dependent on gas (LPG and LNG). But after the supply from the Middle East was affected, the government, giving priority to domestic needs, diverted the supply of gas from factories to homes. This has had a direct impact on production. Many glass factories have reduced their capacity by 50%. Also, due to increase in production costs, prices of glass products have also increased by 20%.
Firozabad became the center of crisis
Firozabad in Uttar Pradesh, which is considered the main glass hub of the country, has become the biggest center of this crisis. The factories here run on natural gas and work continuously at a temperature of 1500 degrees Celsius. If furnaces cool down, restarting them is extremely expensive and time consuming. In such a situation, reducing production has also become a big risk for companies.
Impact on many sectors, cost increased
The impact of glass shortage is not limited to the drinks industry only. Milk, medicines, cosmetics and food industries are also being affected by this. Cosmetics and liquor companies have to spend 20-30% more on packaging than before. Many companies have also stopped taking new orders and postponed expansion plans.
Little hope of quick relief
Experts believe that the situation will not return to normal soon. India is largely dependent on the Middle East for its gas needs, from where the supply remains uncertain. If this situation continues for a long time, its impact may deepen in the coming months. This crisis is becoming a question of survival for small and medium businesses associated with the glass industry, while common people may also have to bear the burden of expensive products.