top of page

By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

Commercial LPG 'evaporates' in Maharashtra

Mumbai : The short supply of commercial LPG cylinders turned ‘grim’ on Wednesday as hundreds of small and medium eateries – on whom the ordinary working Mumbaikars depend on for daily meals – shut down or drastically trimmed menus, on Wednesday.   With an estimated 50,000-plus hotels, restaurants and small food joints, the crunch is beginning to be felt severely, said Federation of Hotel and Restaurant Association of India (FHRAI) vice-president and Hotel and Restaurant Association Western...

Commercial LPG 'evaporates' in Maharashtra

Mumbai : The short supply of commercial LPG cylinders turned ‘grim’ on Wednesday as hundreds of small and medium eateries – on whom the ordinary working Mumbaikars depend on for daily meals – shut down or drastically trimmed menus, on Wednesday.   With an estimated 50,000-plus hotels, restaurants and small food joints, the crunch is beginning to be felt severely, said Federation of Hotel and Restaurant Association of India (FHRAI) vice-president and Hotel and Restaurant Association Western India (HRAWI) spokesperson Pradeep Shetty.   “We are in continuous touch with the concerned authorities, but the situation is very gloomy. There is no response from the Centre or the Ministry of Petroleum on when the situation will ease. We fear that more than 50 pc of all eateries in Mumbai will soon down the shutters. The same will apply to the rest of the state and many other parts of India,” Shetty told  ‘ The Perfect Voice’ .   The shortage of commercial LPG has badly affected multiple sectors, including the hospitality and food industries, mass private or commercial kitchens and even the laundry businesses, industry players said.   At their wits' ends, many restaurateurs resorted to the reliable old iron ‘chulhas’ (stoves) fired by either coal or wood - the prices of which have also shot up and result in pollution - besides delaying the cooking.   Anticipating a larger crisis, even domestic LPG consumers besieged retail dealers in Mumbai, Pune, Chhatrapati Sambhajinagar, Ratnagiri, Kolhapur, Akola, Nagpur to book their second cylinder, with snaky queues in many cities. The stark reality of the 12-days old Gulf war with the disturbed supplies has hit the people and industries in the food supply chains that feed crores daily.   “The ordinary folks leave home in the morning after breakfast, then they rely on the others in the food chain for their lunch or dinner. Many street retailers have also shut down temporarily,” said Shetty.   Dry Snacks A quick survey of some suburban ‘khau gullies’ today revealed that the available items were mostly cold sandwiches, fruit or vegetable salads, cold desserts or ice-creams, cold beverages and packed snacks. Few offered the regular ‘piping hot’ foods that need elaborate cooking, or charging higher than normal menu rates, and even the app-based food delivery system was impacted.   Many people were seen gloomily munching on colorful packets of dry snacks like chips, chivda, sev, gathiya, samosas, etc. for lunch, the usually cheerful ‘chai ki dukaans’ suddenly disappeared from their corners, though soft drinks and tetrapaks were available.   Delay, Scarcity  Maharashtra LPG Dealers Association President Deepak Singh yesterday conceded to “some delays due to supply shortages” of commercial cylinders, but assured that there is no scarcity of domestic cylinders.   “We are adhering to the Centre’s guidelines for a 25 days booking period between 2 cylinders (domestic). The issue is with commercial cylinders but even those are available though less in numbers,” said Singh, adding that guidelines to prioritise educational institutions, hospitals, and defence, are being followed, but others are also getting their supplies.   Despite the assurances, Shetty said that the current status is extremely serious since the past week and the intermittent disruptions have escalated into a near-total halt in supplies in many regions since Monday.   Adding to the dismal picture is the likelihood of local hoteliers associations in different cities like Pune, Palghar, Nagpur, Chhatrapati Sambhajinagar, and more resorting to tough measures from Thursday, including temporary shutdown of their outlets, which have run out of gas stocks.

Tax Terrorism Makes Impact

Tax Terrorism

Around two years ago, while addressing the gathering at the Krishhithon Agriculture Expo held in Nashik, then state agriculture minister Abdul Sattar said that his government will urge the Centre to abolish GST on farm supplies including fertilizer, seeds, and even agricultural equipment. It is critical to lower the cost of agricultural inputs. Farmers will benefit from reduced GST rates on all goods used for farming. I have spoken with Chief Minister Eknath Shinde about the situation, and the state government would shortly bring this topic up with the Center, the minister had stated at the event. Two years later the situation has not changed and the helpless agrarian community bearing the burden. The government which is very generous with the diamond jewellery sector while imposing the tax has not even left the educational field along with the farmers. The state government is not leaving any stone unturned to add to the woes through the SGST.  


The Goods and Services Tax was implemented in India with effect from 1st July 2017. In India, the maximum population is of the middle class and lower middle class where people either belong to the service class or they depend on agriculture for their living. In this scenario, the most important question is what is the impact of GST on a common man or a middle-class family. For the general public, the actual impact of any economy is when the prices of their necessities become affected. For the public in large when prices become low for the day-to-day goods and services that are consumed, the economy is good, else if the inflation rate is higher, then the public gets unsatisfied with the changes done by the government.


The single largest contributing Sector to the Indian Economy is Agriculture. It alone accounts for up to 16 percent of the Indian GDP. GST was supposed to have more of a greater indirect impact on the Agriculture Sector. GST directly or indirectly affects all sections of the economy. Agriculture industry is too not an exception. Transportation is one factor that has a direct impactful effect on Agriculture. The GST rate levied on agricultural products is 5 percent.


At the same time, GST rates on education services in India range from 5 percent to 28 percent, varying significantly depending on the type of service provided. Interestingly, diamond jewellery has finally been brought under the GST regime.


Now GST on diamonds being cut and polished from 0.25 percent to 1.5 percent effective from 18th July 2022. This shows the government’s overall approach towards the elite class. Significantly, GST on aircrafts, helicopters and cruise ships is also very nominal. The issue of ‘Tax terrorism’ was raised in Parliament. INDIA bloc leaders protested against increasing GST on various sectors. The government is in no mood to relent. People are suffering but a certain class is getting privileges.

Comments

bottom of page