LPG shortage triggers worker migration risk for auto component makers, production may be hit: ACMA
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Auto component manufacturers are staring at workforce migration to their native places due to LPG cylinder shortage, which could impact production, a situation not as difficult as the COVID pandemic, but could escalate if not resolved, ACMA said on Monday.
The Automotive Component Manufacturers Association of India (ACMA) represents over 1,064 manufacturers, contributing more than 90 per cent of the auto component industry's turnover in the organised sector.
"Workers shifted to small gas-enabled burners for cooking purposes as usage of wood was discouraged due to air pollution. Now, with LPG cylinder shortage, they are finding it difficult to cook at home, and also some of the factory canteens are shut, forcing them to leave for their native places," ACMA Director General Vinnie Mehta told PTI.
"Currently, the situation is not like the COVID pandemic, but the situation can escalate if not resolved." In FY25, the combined turnover of the auto component industry stood at USD 80.2 billion, with USD 22.9 billion in exports and a trade surplus of USD 500 million.
With industry flagging non-availability of commercial LPG as the government focuses on domestic consumers amid supply disruptions caused by the US-Israeli war on Iran, the petroleum and natural gas ministry on March 9 formed a panel to consider their representations.
The auto component industry had earlier sought an uninterrupted supply of LPG/PNG for MSME foundry and forging units or a reasonable window to shift to alternate fuels amid the government's move to revise the priority order for allocating domestically produced natural gas due to the West Asia crisis.
In a letter to the Ministry of Heavy Industries last week, ACMA had stated that the industry remains deeply integrated with global automotive value chains, and timely support during the present period of geopolitical disruption will help ensure continuity of exports and preserve India's competitiveness in international markets.