India’s business events sector is feeling the heat of a commercial LPG shortage, with venue operators flagging rising overheads and logistical strain on high-volume catering.
While events proceed as planned for now, LPG supply volatility is forcing hotels and organisers into a defensive crouch, particularly regarding F&B logistics and cost-sensitive catering, industry stakeholders say.
Pradeep Shetty, vice president, Federation of Hotel & Restaurant Associations of India, and spokesperson for Hotel And Restaurant Association (Western India), said operational continuity is at risk for large-scale events, as the gas shortage begins to hit high-volume kitchens that rely on a uninterrupted supply.
“Hospitality players are reassessing their capacity for large events, with organisers now seeking catering assurances before booking. We’re seeing a shift toward scaled-down guest lists, simplified menus, and more compact formats. In cases of extreme supply uncertainty, some events are even being rescheduled,” said Shetty.
“The shortage is directly hitting the bottom line. Many hotels are pivoting to electric or induction-based cooking, which adds significant operational expense. Simultaneously, this uncertainty is triggering business losses as events are either postponed or scaled down,” he added.
Arindam C Bahel, general manager of The Fern Brentwood Resort, Mussoorie, said the shortage has led to more strategic kitchen planning and operational adjustments at the property level.
“We have streamlined menus for large MICE events, focusing on dishes that offer execution efficiency without compromising the guest experience. There is now a greater emphasis on pre-preparation, batch cooking, and the selective use of live counters,” said Bahel.
While no major disruptions have been reported at the property so far, he acknowledged that the situation has increased operational pressure.
“There have been instances where supply timing was uncertain, so teams have had to maintain buffer stock and coordinate more closely with vendors,” he explained.
Bahel also confirmed a rise in operating costs driven by higher LPG prices, investment in alternative equipment, and inefficiencies arising from staggered cooking processes. “Margins are under pressure, but our priority remains maintaining service quality,” he emphasised.
