LPG crisis hits craft distillery in Karnataka; Huli, India’s first jaggery rum maker, halts production

The ongoing LPG supply disruption in Karnataka, triggered by the West Asia conflict, has begun affecting small manufacturers, with a craft rum distillery near Mysuru announcing a temporary shutdown after it failed to procure gas for its boiler.

Aruna Urs, founder of the distillery that produces Huli Single-Origin Jaggery Rum, said in a post on X that operations were suspended from Monday due to the lack of LPG supply.

“Huli is closed from Monday as we are unable to procure LPG for our boiler,” Urs wrote.

He said the distillery relied on both a public sector distributor and a private supplier for LPG but was informed that refills were currently restricted.

“We had a public and a private suppliers and both managers categorically told that the order from above is to only refill domestic canisters,” he wrote.

Urs also dismissed explanations circulating informally about the shortage, saying, “Everything else we hear from the ‘sources’ is pure bullshit.”

The statement comes amid a wider LPG supply crunch that has affected several sectors in Karnataka in recent days, particularly commercial users such as hotels, restaurants and small industries. Many establishments have reported delays in obtaining commercial cylinders, forcing some to cut operations or temporarily shut kitchens.

Oil companies and government officials have indicated that domestic LPG supply is being prioritised during the disruption, which has been linked to global supply uncertainties triggered by tensions in West Asia. As a result, commercial and industrial consumers in several cities, including Bengaluru, have reported difficulty obtaining cylinders.

The Huli Spirits, located near Mysuru, produces a premium craft rum made from jaggery and operates on a micro-distillery model. Boilers are used in the distillation process, making LPG a critical input for production.

Urs did not specify how long the shutdown would last but suggested that operations could resume only after supply normalises.