Exporters’ body FIEO on Thursday urged the government to allocate LPG and natural gas to export-oriented manufacturing units on priority basis as any disruptions in the fuel availability will create problems in maintaining production schedules.
Federation of Indian Export Organisations (FIEO) president S C Ralhan said that he has written a letter in this regard to the Union Commerce and Industry Ministry.
“Manufacturing exporters are facing issues. There is an urgent need for priority allocation of LPG/natural gas as fuel for export-oriented units (EOUs) and export-oriented SMEs,” Ralhan said.
The West Asia crisis, triggered by the launch of a joint attack by the US and Israel on Iran, has disrupted energy supplies in several countries. The government has revised the priority order for allocating domestically produced natural gas, placing LPG production alongside CNG and piped cooking gas at the top.
He said that export-oriented manufacturing units are operating in a highly competitive global environment and are constantly competing with suppliers from countries such as China and other East Asian economies.
Large global buyers follow highly structured global sourcing models and require uninterrupted production and timely deliveries from their suppliers. “In the event of disruption in fuel availability, Indian exporters are unable to maintain production schedules. Consequently, international buyers are compelled to shift their orders to competing countries, particularly China,” FIEO said in a communication to the commerce ministry.
In this context, the availability of LPG/natural gas as an industrial fuel is critical, particularly for export-oriented SMEs and EOUs that rely on it for their manufacturing processes, it added.
“We fully appreciate that the present gas supply situation is challenging. However, even through a calibrated mechanism, a dedicated priority allocation for export-oriented industries would help ensure that production and export commitments are not adversely affected,” Ralhan said.
He said that ensuring fuel availability will not only protect existing export orders but will also reinforce international confidence in India as a reliable sourcing destination.
Also read: LPG crunch may hit QSRs, raise input costs for consumer firms
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