Iran-Israel War Triggers India's Worst LPG Crisis in Years - Hotels and Restaurants Hit Hard

Iran-Israel War Triggers India's Worst LPG Crisis in Years - Hotels and Restaurants Hit Hard

By Hariharan U

Published on March 11, 2026

India is facing a severe shortage of liquefied petroleum gas (LPG) following the closure of the Strait of Hormuz by Iran amid escalating tensions in West Asia. The strait is the conduit for nearly 90% of India's LPG imports and 30% of its natural gas requirements, making the conflict's ripple effects acutely felt across the country's hospitality, industrial, and household sectors.

Government Response

The Ministry of Petroleum and Natural Gas invoked the Essential Commodities Act on March 6, directing refineries to maximise LPG output and prioritising supply to domestic households. The LPG refill booking cycle was extended from 21 to 25 days. The following day, prices were revised upward non-subsidised domestic cylinders rose by ₹60, and commercial 19 kg cylinders by ₹114.5, the first such hike since April last year. A three-member committee of Oil Marketing Company executives has been constituted to review supply shortfalls for the commercial sector, including hotels and restaurants.

Hospitality Sector Under Pressure

The crisis has hit the restaurant and hotel industry hardest. Major associations including NRAI, AHAR, and regional bodies from Bengaluru, Chennai, Odisha, and Punjab have warned of widespread closures. In Mumbai, around 20% of hotels and restaurants have already shut, with associations predicting the figure could reach 50% within days. In Bengaluru, many small eateries restricted their menus to tea and coffee after commercial cylinder refills halted from March 7. Restaurateur Zorawar Kalra warned that a single day's supply disruption costs the industry and the broader economy between ₹1,200–1,300 crore, noting that 75% of the ₹6.6-lakh-crore restaurant ecosystem depends on LPG.

States Take Action

Several state governments have responded with their own measures. Gujarat has imposed a 50% cut in gas supply to industries, with a 40% reduction for fertiliser and milk processing units. Madhya Pradesh formed a three-member monitoring committee, while Kerala convened a meeting with oil company representatives and deployed district-level inspection squads to curb hoarding. Karnataka Chief Minister Siddaramaiah and Tamil Nadu Chief Minister M.K. Stalin have both written to the Centre urging immediate relief. Andhra Pradesh, whose Visakhapatnam port houses a major LPG cavern with a 60,000 metric tonne capacity, has reassured residents of adequate stocks while acknowledging a vessel delay due to Strait disruptions.

Wider Impact

Beyond restaurants, the shortage is straining paying guest accommodations in Hyderabad's IT corridors, textile processing factories in Coimbatore, and CNG-dependent autorickshaws in Kolkata. In Delhi-NCR, smaller outlets are resorting to black market cylinders, with prices surging from ₹1,200 to ₹1,400–1,500 in a single day. Panic buying and long queues at distribution centres have been reported across Bihar, Uttar Pradesh, Jharkhand, Rajasthan, and Chhattisgarh. The wedding season has compounded anxiety in Punjab and Rajasthan, where hoteliers fear significant revenue losses during one of the busiest periods of the year.

The situation remains fluid, with the government urging calm while multiple states and industry bodies push for a coordinated national response to restore supply and prevent prolonged economic disruption.


New Dairy Labelling Rule: FSSAI Makes Droplet Logo Mandatory from 2028

New Dairy Labelling Rule: FSSAI Makes Droplet Logo Mandatory from 2028

By Manu Vardhan Kannan

Published on November 13, 2026

The Food Safety and Standards Authority of India (FSSAI) has introduced a new labelling requirement for milk and milk products across the country. From July 1, 2028, all milk products, including composite milk products, will have to carry a standardised blue-and-white droplet logo to make them easier for consumers to identify.

The new logo features a white droplet against a blue square background. It will serve as a common identification mark across milk and milk product packaging, helping consumers recognise these products more easily while shopping.

According to FSSAI officials, the logo aims to help consumers quickly identify products belonging to this category at the point of purchase. It is also expected to improve awareness of the regulatory identity of milk and milk products, make relevant information on product labels easier to recognise and bring greater consistency to labelling practices.

The requirement has been introduced through the Food Safety and Standards (Labelling and Display) Second Amendment Regulations, 2026, which were published in the Gazette on November 9, 2026. The amendment updates the existing Food Safety and Standards (Labelling and Display) Regulations, 2020, and will come into effect from July 1, 2028.

With this change, milk and milk product manufacturers will need to include the prescribed logo on their packaging within the given timeline. The move is aimed at creating a uniform identification system for dairy products and making product information clearer for consumers across the country.


The Souvenir You Bought Abroad Could Become a Customs Problem

The Souvenir You Bought Abroad Could Become a Customs Problem

By Hariharan U

Published on November 13, 2026

A souvenir picked up during an overseas holiday is often meant to bring home a little piece of the destination. It could be an exotic plant from a Bangkok nursery, a regional food speciality, a decorative seashell or a handcrafted item made from natural materials. However, what appears to be an ordinary holiday purchase could become a customs issue when the traveller arrives in India.

The issue came into focus after Kolkata Customs intercepted a passenger arriving from Bangkok on October 24, 2026, and seized 220 live plants weighing approximately 17 kg. The consignment, comprising 150 guava plants, 20 jamun plants and 50 Caladium plants, was reportedly carried in a trolley bag without the mandatory import permit and phytosanitary certificate. Following examination, the Plant Quarantine Authority ordered the consignment to be deported or destroyed in accordance with the applicable regulations.

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The incident raises an important question for international travellers: just because an item can be purchased legally in another country, does it mean it can be brought into India?

What Travellers Should Watch Out For

Plants, seeds, saplings, bulbs, cuttings and other plant materials are among the items that can attract scrutiny at Indian airports. Under the Plant Quarantine (Regulation of Import into India) Order, 2003, the import of regulated plant materials is subject to prescribed conditions. Depending on the product and its origin, travellers may require an import permit, a phytosanitary certificate and inspection by the competent authority.

Food products also deserve attention. Fresh fruits and vegetables, meat, dairy products and other animal-origin materials may be subject to separate import and quarantine requirements. However, not every packaged food product is prohibited, and admissibility depends on the nature, origin and applicable regulations.

Wildlife-derived souvenirs present another concern. Items made from ivory, protected animal parts, certain corals or products derived from endangered species may fall under India's wildlife protection laws and international trade restrictions. The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulates international trade in listed animal and plant species, including their parts and derivatives. Purchasing such an item from a commercial shop overseas does not automatically make its import legal.

Why This Matters to the Hospitality and Tourism Industry

The issue extends beyond individual travellers. Hotels, resorts, restaurants, travel operators and destination retailers are also connected to the movement of goods across international borders.

Luxury resorts, for instance, may use imported ornamental plants and specialised landscaping materials to create distinctive guest experiences. Restaurants depend on imported speciality ingredients, while hotels increasingly cater to international guests with specific food preferences and requests.

These activities require responsible sourcing and compliance with applicable import regulations. Tour operators and travel companies can also play a role by informing guests about restrictions on souvenirs, food products and natural materials before they return home.

For hospitality businesses, awareness of these requirements is particularly relevant when arranging international deliveries, sourcing imported products or assisting guests with special requests. A seemingly minor oversight in procurement or transportation can have regulatory and operational consequences.

Understanding India's Customs and Import Regulations

India's Customs Baggage Rules, 2026, which came into effect on February 2, 2026, provide the framework for passenger baggage allowances and declarations. Eligible arriving passengers, including Indian residents and tourists of Indian origin, have a general duty-free allowance of up to ₹75,000 when arriving through modes other than land, subject to the prescribed conditions and exclusions. The allowance for foreign tourists is ₹25,000.

However, the duty-free allowance should not be confused with permission to import restricted or prohibited goods. Items such as plants, wildlife products and other regulated materials remain subject to their respective laws, regardless of their purchase value.

Passengers arriving in India can choose between two customs clearance channels. The Green Channel is intended for those without dutiable or prohibited/restricted goods, while the Red Channel is for passengers carrying goods requiring declaration. Travellers carrying dutiable or restricted items must follow the applicable declaration and clearance procedures. Using the Green Channel despite carrying such goods can result in confiscation, penalties or prosecution, depending on the circumstances.

Check Before You Pack

International travellers should verify the admissibility of their purchases before leaving the destination country rather than waiting until they reach an Indian airport. This is particularly important for live plants, seeds, fresh produce, animal-origin products, wildlife-derived souvenirs and other natural materials.

Passengers should retain purchase receipts, product descriptions and relevant certificates or permits wherever applicable. When the status of an item is unclear, checking with Indian Customs or the relevant Plant Quarantine or wildlife authority is a safer approach than assuming that personal use or gift-giving provides an exemption.

The Kolkata seizure is a reminder that international travel comes with responsibilities that extend beyond immigration formalities and baggage allowances. As travel becomes more accessible and travellers increasingly seek distinctive local products and experiences, understanding what can legally cross borders becomes equally important.

A souvenir is meant to preserve a memory of a journey, not create an unexpected problem at the airport. Sometimes, the most responsible travel decision is knowing what to leave behind.


Why Are Indian Airlines Reducing Flights During the Festive Travel Season?

Why Are Indian Airlines Reducing Flights During the Festive Travel Season?

By Manu Vardhan Kannan

Published on November 13, 2026

India's aviation sector is facing fresh challenges as airlines have reduced their scheduled flights by around 6% during October and November compared to the same period last year. The decline comes during the busy Diwali travel season, as rising operating costs, expensive airfares and operational difficulties put pressure on airlines. According to aviation analytics firm Cirium, this is the first year-on-year capacity decline since 2020, when airlines cut nearly 45% of their services following the collapse in travel demand during the pandemic.

Several factors have contributed to the reduction in flight schedules. Rising aviation turbine fuel (ATF) prices remain one of the biggest concerns for airlines, as fuel accounts for a major share of their operating expenses. IndiGo's fuel bill reportedly increased by 67% during the relevant quarter. At the same time, the weakening rupee has added to expenses linked to aircraft leases, maintenance, spare parts and fuel, most of which are paid for in US dollars.

Airspace restrictions around West Asia have also affected flight operations. Some international flights are now taking longer routes to avoid restricted areas, increasing fuel consumption, flying hours and crew duty time. In certain cases, airlines have also had to arrange technical stops, adding further costs to their operations.

Passenger demand has also shown signs of slowing down. Domestic air passenger traffic fell 6.5% year-on-year in September, recording 118.2 lakh passengers compared to 126.4 lakh during the same month last year. With fewer passengers willing to pay higher ticket prices, airlines are reviewing their schedules and reducing flight frequencies on routes where passenger numbers and earnings do not justify continued operations.

Airfares have become another concern during the festive travel period. On some routes, one-way ticket prices reportedly reached levels comparable to the cost of a full round trip during the previous year. Higher fares are not just a result of rising operating expenses but are also affecting passenger demand. As ticket prices increase, budget-conscious travellers may postpone their plans, choose trains or buses, or cancel their trips altogether. This further affects seat occupancy and makes it difficult for airlines to operate flights profitably.

Technical and operational difficulties have added to the situation. In September, technical issues accounted for 37.8% of scheduled domestic flight cancellations, followed by operational reasons at 31.2%. The overall industry cancellation rate stood at 1.15%. Aircraft availability, engine maintenance and shortages of spare parts have also affected airline operations, while longer flight routes have made crew scheduling and aircraft planning more challenging.

The impact has varied across airlines. IndiGo recorded 91.1% on-time performance across 10 major airports in September, followed by Akasa Air at 90.8%. However, SpiceJet reported a cancellation rate of 20.29%, while its on-time performance stood at 16.6%.

To manage these challenges, airlines need to focus on controlling operating expenses, improving aircraft maintenance, securing spare parts and planning flight schedules more effectively. Better fare options, advance-booking offers and clearer ticket pricing can also help passengers plan their journeys without facing unexpected costs. Timely cancellation updates, easier refunds and rebooking facilities are equally important in improving the overall travel experience.

The Directorate General of Civil Aviation (DGCA) is already monitoring domestic airfares, particularly on busy routes and sectors with limited travel alternatives. The regulator has also asked airlines to bring fares down to reasonable levels on 10 routes following concerns over high ticket prices.

India's aviation sector now faces the challenge of balancing operating costs with passenger expectations. Rather than focusing only on increasing the number of flights, airlines need to ensure that services remain reliable, affordable and capable of handling growing travel demand. The recent reduction in schedules highlights how rising costs, airspace restrictions and technical difficulties can affect both airlines and passengers in a market that continues to hold strong growth potential.

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