Pune: Micro, small, and medium enterprises (MSMEs) across the city are grappling with labour shortages as many workers have left for their hometowns following the LPG crisis, leading to a sharp decline in production.The majority of these labourers hail from Uttar Pradesh, Bihar, and Odisha, as well as rural parts of Maharashtra.“Those who are married tend to stay back because they have established roots here — rented homes, children in local schools, and their own LPG connections,” said Sandip Belsare, president of Pimpri Chinchwad Small Industries Association. “However, bachelor migrant laborers have returned to their homes in large numbers. They are heavily dependent on tiffins and canteens, which have been hit by the fuel shortage.“The shortage is particularly severe for MSMEs in the automotive, furnishing, and plastics sectors. These industries rely on pigment surface and powder coating processes that require ovens or furnaces fuelled by LPG. Without a steady gas supply, units are unable to operate at full capacity.According to Ravindra Sonavane, a founding member of the Pune chapter of Laghu Udyog Bharati, these are labour-intensive tasks. A small factory typically requires seven to ten workers on the floor, while larger units may need up to 50.Lack of fuel has effectively shortened the workday. “Production is now being halted at 4:30 pm because there simply isn’t enough LPG to keep the furnaces running,” said a factory owner in Bhosari. “Because of this, workers have no incentive to stay; there is no opportunity for an additional shift or overtime pay.”In an effort to retain their workforce, some MSMEs have provided induction stoves at their facilities so workers can cook their own food. However, factory owners admit that the loss of overtime wages remains the primary reason for the exodus.Despite the current uncertainty, Sonavane remains optimistic about the sector’s resilience. He noted that Pune’s MSMEs have survived worse, including the Covid-19 lockdowns and the industrial strikes of the 1990s. “While it is difficult for smaller companies to recoup losses, we have seen larger manufacturing units complete an entire year’s production target in just six months following a prolonged shutdown,” he added.Industry analysts point out that the LPG crisis is not the only factor at play. Many companies have already achieved their yearly production targets and are currently focused on clearing existing inventory rather than ramping up manufacturing.Additionally, the timing coincides with the start of the festive and wedding season. Traditionally, many workers return to their hometowns in late March and early April, further thinning the ranks of an already depleted workforce.
