Gujarat ice cream makers brace for cone shortage amid gas supply woes

Ahmedabad/Vadodara: Ice cream makers in Gujarat are bracing for a possible cone shortage during the peak summer season as the Middle East war disrupts gas supplies, affecting cone and packaging production across the state. Manufacturers said the shortage has emerged at the start of summer, the most critical period for the industry, with some companies warning that supplies could tighten further in the coming months if the situation does not improve. Retail ice cream prices are also expected to rise by 10% in April.Bhupat Bhuva, chairman of the Gujarat Ice Cream Association, said, "Cone and packaging materials have started witnessing the impact of gas supply cut. Most of the companies source cones from other suppliers, and there is a price rise of up to 20% in different items."Cone production has been hit because manufacturers depend on gas as fuel. Industry executives said lower gas availability has reduced output, raising concerns over whether suppliers will be able to meet demand through the summer. Himanshu Kanwar, CEO of Vadilal Industries Ltd, said, "The industry has started observing the impact of short supply of gas just at the beginning of the summer season, which contributes more than 50% to annual sales. All cone manufacturers use gas as their fuel, and in the current situation, their production has decreased, and they fear they will not be able to supply cones in the coming months if the situation does not improve. Similarly, packaging material supply is also affected."For ice cream manufacturers, about 25% of products depend on gas, including cones, ice cream cakes and bakery items. Dry fruit roasting, another gas-dependent process, is also expected to be affected.Ankit Chona, MD of Hocco Ice Cream, said, "There is a clear impact of gas supply shortage in the cone segment. For new orders, suppliers have increased prices by up to 25-30% as they are running on low production. Ice cream prices will be affected because most raw materials have become costlier by an average 10% compared to last summer."Not all companies expect disruption. Amul said it has enough internal capacity to avoid shortages. "We have enough in-house manufacturing capacity, and we do not foresee any problems," said Jayen Mehta, managing director of the Gujarat Co-operative Milk Marketing Federation (GCMMF).Sources said Surat-based Sumul Dairy, a part of GCMMF, invested Rs 50 crore in 2024 in an ice-cream waffle cone facility with a capacity of 10 crore cones per annum. In addition to Sumul's plant, Amul also relies on the manufacturing facility of Anand-based Kaira Can Company Limited, which has one of the state's oldest cone divisions.