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IBF Urges Petroleum Ministry to Prioritize Natural Gas for MSME Bakeries

Federation warns that treating bakeries as "hospitality services" under new LPG restrictions threatens the livelihoods of 1.5 million workers and daily nutrition for millions.

Khwaish Hingad by Khwaish Hingad
March 16, 2026
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IBF Urges Petroleum Ministry to Prioritize Natural Gas for MSME Bakeries

-Khwaish Hingad (editorial1@imaws.org)

The Indian Bakers Federation (IBF) has formally reached out to Shri Hardeep Singh Puri, Hon’ble Minister for Petroleum & Natural Gas, raising critical concerns regarding the recent restrictions on commercial LPG supply. Representing over 50,000 MSME bakeries nationwide, the IBF has categorized these units as essential food manufacturers rather than hospitality services, warning that current fuel disruptions could lead to nationwide shortages of staple goods like bread and biscuits.

The federation is calling for an immediate exemption from the March 5th LPG restrictions and a strategic shift toward prioritizing natural gas connections for the baking industry to ensure long-term food security and price stability.

Below are the points the association put across to the ministry.

1. The Indian Bakers Federation (IBF) represents 50,000+ MSME bakeries employing 1.5 million workers and
contributing 735,000 crore to India’s economy. MSME bakeries are food production units – not hospitality services. They produce essential staple goods (bread, biscuits) critical to daily nutrition for millions of Indians, particularly lower- income families.

2. The Order dated 05th March 2026 (Para 3) restricts commercial LPG supply to domestic consumers only. This blanket restriction treats bakeries identically to restaurants, creating a critical distinction: restaurants are service providers; bakeries are essential food manufacturers. Immediate disruption o f commercial LPG supply to bakeries threatens nationwide bread and staple food shortages.

3. MSME bakeries cannot rapidly switch fuel sources. The solution: transition bakeries to natural gas supply with government priority. Natural gas provides: stable pricing, supply reliability, environmental benefits, reduced fuel imports, and long-term sector viability.

4. Failure to act will result in: closure of thousands o f MSME units, loss of 1.5 million jobs, food shortages, and broader supply chain disruption. Food security is a national priority.

5 We request the Ministry to:
• Exempt MSME bakeries from commercial LPG supply restrictions
• Prioritize natural gas connections for bakeries in all cities
• Establish priority/subsidized natural gas rates for MSME bakeries

The IBF’s appeal underscores a vital distinction in the food industry: bakeries are high-volume production units that serve as a backbone for affordable nutrition. By advocating for a transition to natural gas and requesting subsidized rates, the federation is not just seeking a fuel alternative but a sustainable infrastructure that protects both the MSME sector and the consumer. The Ministry’s response will be a defining factor in whether the industry faces a wave of closures or successfully pivots toward a more reliable, environmentally friendly energy source.

Tags: bakery industry IndiaCommercial LPG Restrictionsfood manufacturingFuel TransitionHardeep Singh PuriHospitality vs ManufacturingIBFIndian bakers federationIndustrial Gas ConnectionsKitchen Herald.Ministry of Petroleum and Natural GasMSME BakeriesMSME News IndiaNatural Gas SupplyStaple Food Security
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