Ratlami sev loses crunch as LPG crisis bites

Indore: The crackle of sev frying in hot oil, a sound woven into Ratlam's narrow lanes, has grown faint. Production of the city's storied Ratlami Sev — a GI-tagged snack with nationwide pull — has plunged nearly 50%, felled by commercial LPG shortages and packaging costs up 30%.

The labour-intensive industry of the largely handmade namkeen, is now under stress as a squeeze on commercial LPG supplies and a sharp rise in packaging costs hit operations.





For Ratlam, sev is not just a snack but a legacy and a local economy. Thousands depend on the trade, from workers in small frying units to transporters and retailers. Ratlami sev, which carries a Geographical Indication tag, has a distinct identity and demand across the country, with supplies reaching multiple markets through a wide distribution network.

"Production has dropped by almost 50% because LPG supply is restricted. On top of that, packaging costs have spiked, increasing our manufacturing cost. We have not seen such a situation except during the lockdown period," said a third-generation manufacturer from Ratlam, Dilip Gelda, over the phone.

There are an estimated 400 to 500 organised and unorganised units in Ratlam, with sev being produced in almost every lane. Industry estimates suggest around 5,000 kg of Ratlami sev is produced daily under normal conditions.

However, with limited LPG availability and rising costs, most units are now shutting operations by early afternoon instead of running till evening.

Manufacturers said prices have increased for the first time in nearly two-and-a-half years, with rates going up by about Rs 20 per kg to around Rs 300 per kg in the last week of March, as operating costs have risen by 25 to 30%.

"Low business is adding to the pressure as fixed costs like worker salaries remain. A medium-sized unit typically employs six to eight workers, and managing wages amid falling output has become difficult," said past president of Ratlami Sev Evam Namkeen Mandal, Shailendra Gandhi, who runs a shop started by his father in 1977.

"Many manufacturers are trying to shift to diesel, coal or wood, but that is not viable for maintaining quality. Business is down significantly and so is production."

Manufacturers said LPG restrictions have disrupted production cycles, as large-scale frying depends on consistent heat. With supply becoming irregular, units are running fewer batches and cutting down operating hours.

The cost pressure has intensified with packaging material prices, including laminated pouches and tins, rising by around 30% in recent months. Traders said margins are shrinking, forcing manufacturers to either reduce pack sizes or consider further price hikes.

Despite its GI status, the sector remains largely fragmented, with small and medium units lacking the capacity to absorb sudden shocks. Industry insiders said the crisis has exposed the vulnerability of traditional food clusters dependent on a single fuel source.

The impact is now visible across markets. Retailers in Indore, Bhopal and other cities are receiving smaller consignments, and delivery timelines have stretched.

A similar trend is being seen in Indore, where namkeen production has dropped by around 10 to 15% due to higher costs and restricted LPG supplies.