Despite higher quotas, supply fails to reach ground Kolhapur: Despite official assurances and a 20 per cent increase in gas allocation for hotels and food processing units, operators in Kolhapur say supplies remain elusive. With distributors citing administrative curbs even as stocks are available, the crisis has pushed nearly 4,000 establishments to the brink — threatening 80,000 livelihoods and casting a shadow over the city’s tourism-dependent economy. The situation stands in contrast to directions issued by Prime Minister Narendra Modi, who has emphasised that essential establishments should not face disruption in fuel and gas supplies. While policy decisions at the Centre and the state appear aligned to protect commercial users, implementation gaps at the district level have left hotel operators struggling to access basic fuel. Industry representatives allege that although gas distribution companies have confirmed adequate stock, supply is being withheld due to administrative restrictions. The lack of clarity and coordination has deepened uncertainty, with many operators warning that prolonged disruption could force them to suspend operations. Local Economy Kolhapur’s hospitality sector — comprising small eateries, mid-sized establishments and larger hotels — forms a critical pillar of the local economy. Beyond direct employment to nearly 80,000 workers, it sustains a wide network of suppliers, transporters and ancillary businesses. Any prolonged disruption in essential services such as gas, electricity and water, stakeholders point out, risks triggering a cascading economic impact. The origins of the current strain lie in global supply disruptions following tensions in the Gulf region, which prompted authorities to prioritise domestic LPG consumption. While commercial allocations were initially curtailed, subsequent policy revisions sought to restore balance by enhancing quotas for sectors such as hospitality and food processing. However, in Kolhapur, operators say these decisions have not translated into actual relief. No Response Compounding the crisis is the reported lack of administrative response. Industry members claim that attempts to reach district authorities have gone unanswered, leaving them without guidance or timelines for restoration of supply. “Gas is available, but supply is being denied citing administrative reasons. If this continues, we will be left with no option but to shut down operations,” said Sachin Shanbhag, a senior office-bearer of the Kolhapur Hotel Owners’ Association. Hotel operators also underline their longstanding role in public service, particularly during emergencies. From floods in Kolhapur to disasters beyond the state, the fraternity has repeatedly mobilised resources to provide food and relief — often at short notice and personal cost. During the Bhuj earthquake, Kolhapur-based operators were among the first to set up community kitchens for affected families. The current impasse, therefore, raises a broader question of administrative accountability. If the state can rely on the sector during crises, stakeholders argue, it must also ensure that the industry’s own operational needs are not neglected. Unless the supply chain is normalised quickly and gas is made available in line with declared quotas, the fallout could be severe. Apart from the immediate risk to thousands of livelihoods, Kolhapur’s tourism sector — still in a phase of recovery — could face a significant setback, undermining economic momentum in the region. Despite announcements by the Centre and the state to increase gas quotas for hotels and food processing units, local distributors are refusing supply, claiming the decision is limited to the national level. While they acknowledge that stock is available, supply continues to be denied citing prevailing conditions. Sachin Shanbhag, President, Kolhapur Hotel Owners’ Association
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