Stocks of food delivery players and restaurants ended lower on Tuesday amid a shortage of commercial LPG cylinders, which triggered fears of operations being shut if the situation is not resolved, as per PTI. The stock of food delivery player Swiggy fell by 2.26 per cent, while Eternal lost 1.50 per cent on the BSE. Jubilant FoodWorks, which operates fast-food chains Domino's Pizza and Dunkin' Donuts, declined 1.45 per cent.
Also, United Foodbrands slipped 1.42 per cent, Sapphire Foods India edged lower by 0.94 per cent, and Restaurant Brands Asia dipped 0.73 per cent.
Mumbai eatries may shut operations
Hit hard by the shortage of commercial LPG cylinders, the hoteliers' body, FHRAI, on Tuesday said a large number of hotels and eateries in Mumbai will have to shut operations in the next two days if the situation is not resolved, PTI reported.
Similar disruptions are also reported from Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana, and Andhra Pradesh, Pradeep Shetty, Vice President, Federation of Hotel and Restaurant Association of India (FHRAI) said.
Amid the West Asia crisis, 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. This has led to a supply crunch for hotels and restaurants, which use market-priced commercial LPG, according to PTI.
The shortage of commercial LPG has become extremely serious over the past week, with intermittent disruptions escalating into a near-complete halt in supply in several regions since Monday, said Shetty, who is also the Spokesperson, Hotel and Restaurant Association (Western India) - HRAWI.
"We are already receiving reports of severe shortages from cities including Mumbai, Pune, Aurangabad and Nagpur, while similar disruptions are being reported in states such as Delhi, Karnataka, Telangana and Andhra Pradesh. If the situation does not improve within the next two days, nearly 50 per cent of hotels and restaurants in Mumbai may be forced to temporarily shut operations depending on the stock of cylinders they currently have," he cautioned.
LPG, LNG supplies hit
As Middle East crisis escalates, India is beginning to feel the tremors at home. Nearly half of India's crude oil imports, along with a significant share of its liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipments, typically pass through the Strait of Hormuz -- the narrow Gulf chokepoint that is now effectively closed due to the conflict.
India's ties with the region extend beyond energy. Around 10 million Indians live and work across the Gulf, sending home record remittances that support millions of families and contribute significantly to India's external accounts.
More broadly, India's economic ties with the Middle East run deep. The region accounts for 17 per cent of India's exports, supplies 55 per cent of its crude oil and generates 38 per cent of its remittances, according to brokerage firm Jefferies. (With Agency Inputs)
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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