The Expanding Impact of War in Iran<\/p>\n
Jakarta \u2014 The escalating impact of the Iran war is triggering severe\nshocks across India\u2019s food industry sector.<\/p>\n
The war has caused disruption to the global liquefied petroleum gas\n(LPG) supply chain. Millions of restaurants across India now face the\nprospect of mass closures.<\/p>\n
The majority of India\u2019s LPG supplies are met through imports.\nDisruption to distribution routes through the Strait of Hormuz has\nrendered the nation\u2019s energy supplies critical, given that the majority\nof shipments must transit through this vital global trade\nchokepoint.<\/p>\n
Furthermore, India\u2019s Ministry of Petroleum and Natural Gas formally\ninstructed oil refineries to prioritise LPG supplies for 330 million\nhouseholds as the primary cooking fuel source on Tuesday. This policy\nsacrifices more than 3 million business operators who have so far\ndepended on commercial LPG cylinders.<\/p>\n
The Indian government, via a social media post on X, stated that in\naddition to prioritising households, it would redirect imported\nliquefied natural gas for essential commercial sectors. Public\nfacilities such as hospitals and educational institutions will receive\naccess before entertainment and food industries.<\/p>\n
According to CNBC International on Wednesday (11 March 2026), Sagar\nDaryani, President of the National Restaurant Association of India\n(NRAI), stated that the prioritisation policy has created an extremely\nworrying crisis situation. He warned that the measure would force many\nrestaurants to cease operations within the coming days.<\/p>\n
\u201cApproximately 90 per cent of restaurants in India are heavily\ndependent on LPG cylinders to operate their kitchens. The industry has\nalready faced weak demand and high costs; if the LPG supply problem\ncontinues, it will cause business closures and job losses,\u201d said Sagar\nDaryani.<\/p>\n
The NRAI itself represents more than 500,000 restaurants across\nIndia. This industry is an important economic pillar with annual\nturnover exceeding 5.7 trillion rupees (IDR1.077 trillion) and employing\nover 8 million people.<\/p>\n
Sagar Daryani added that the organisation is currently pressuring the\ngovernment to implement protective measures for the culinary sector. The\nNRAI is calling on the government to immediately classify the restaurant\nindustry as an essential service to ensure energy supply certainty.<\/p>\n
India currently holds the status of the world\u2019s second-largest LPG\nimporter, with consumption rates reaching 31.3 million metric tonnes in\nfiscal year 2025. A report from S&P Global indicates that India\u2019s\ndomestic production capacity can only meet approximately 41 per cent of\ntotal demand.<\/p>\n
Manish Sejwal, Senior Vice President of the commodities market at\nRystad Energy, explained how vulnerable India\u2019s position is in this\nconflict. Dependence on currently turbulent sea routes represents a\nmajor weakness in the nation\u2019s energy resilience.<\/p>\n
\u201cIndia imports approximately 67 per cent of its LPG requirements,\nwith approximately 90 per cent of these imports transiting through the\nStrait of Hormuz,\u201d said Manish Sejwal.<\/p>\n
On the Brink of Bankruptcy<\/p>\n
Conditions on the ground are deteriorating further for small business\noperators. A hotel and restaurant advocacy group based in Mumbai, AHAR,\nhas reported this shortage issue to local authorities and issued a stern\nwarning that many of its members are already on the brink of\nbankruptcy.<\/p>\n
In the southern region, the situation is even more dire for hotel\nentrepreneurs. M. Ravi, President of the Chennai Hotels Association,\nrevealed that massive operational shutdowns will be unavoidable in the\nnear term due to fuel shortages.<\/p>\n
\u201cNearly 10,000 businesses will close on Wednesday across Tamil Nadu\nstate. This will encompass the majority of small and medium-sized\nrestaurants there,\u201d said M. Ravi.<\/p>\n
Although the government did not initially explicitly halt supplies to\nhotels and restaurants, the latest instructions to domestic oil\nmarketing companies have tightened gas flow. Distributors are now\nprohibited from supplying remaining stocks to the commercial sector.<\/p>\n
Chandra Prakash, President of the All-India LPG Distributors\nFederation, confirmed that the directive from the centre is very clear.\nDistributors are being asked to cut supplies to the commercial sector to\npreserve stock reserves for the general public.<\/p>\n
\u201cRestaurants must seek alternative fuel sources such as firewood or\nkerosene or switch to electric cookers,\u201d concluded Chandra Prakash,\nwhose organisation represents nearly 25,000 LPG distributors across\nIndia.<\/p>\n
A Sensitive Issue<\/p>\n
The LPG issue is an extremely sensitive political matter in India,\nparticularly because it concerns Prime Minister Narendra Modi\u2019s social\nwelfare scheme that subsidises LPG for poor households. As of November,\nthe government had provided 103 million subsidised gas connections, and\ngas prices are predicted to become a contentious issue in elections\nacross five Indian states during the first half of 2026.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/iran-war-continues-to-claim-victims-as-neighbouring-indias-business-faces-bankruptcy-1773219219", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }