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By Manu Vardhan Kannan
Published on October 2, 2026
The latest commercial LPG price hike has added another cost pressure for India’s food-service and hospitality sector, coming just as hotels, restaurants, caterers and other food businesses prepare for the festive season. From October 1, 2026, the price of a 19-kg commercial LPG cylinder increased across several cities, with Delhi seeing a ₹62.50 rise to ₹2,810. Chennai’s price has moved up to ₹2,983, while the increase varies across cities. Domestic LPG prices, meanwhile, remain unchanged.
The October revision follows a ₹9.50 increase in September, when the Delhi price moved to ₹2,747.50. The latest increase therefore comes at a time when commercial kitchens are already preparing for higher festive-season activity.
For the hospitality industry, LPG is a daily operating requirement across restaurants, hotel kitchens, bakeries, caterers, cloud kitchens, canteens and smaller food outlets. Even a relatively small increase per cylinder can become meaningful for businesses that use several cylinders every week or month.
The increase is linked to a combination of international LPG prices, supply conditions, freight costs, currency movements and the wider energy market. India imports around 60% of its LPG requirement, making the country sensitive to movements in international markets. Earlier in 2026, the disruption to shipping through the Strait of Hormuz sharply affected LPG flows into India. Reuters reported in March that India's LPG imports were expected to fall by 46% month-on-month, while the share of Gulf exporters in India's imports had declined as alternative supplies were sought.
The West Asia conflict has therefore been an important factor in the LPG supply situation. Disruptions around the Strait of Hormuz affected shipments from major Gulf suppliers and pushed India to look for cargoes from the United States, Russia, Argentina and other markets. Longer shipping routes and tighter global availability can add to the landed cost of LPG.
However, the October 1 price revision should not be attributed entirely to the conflict. International LPG benchmarks, freight, currency movements and other market factors also influence commercial LPG prices. Saudi Aramco, for example, raised its October LPG official selling prices amid higher global oil prices and demand, providing another indication of the international market pressure facing LPG buyers. India is also working to diversify its LPG supplies. State-owned LPG importers recently issued a tender seeking around 2.75 million metric tonnes of LPG from the United States for delivery in 2027, showing the country's effort to broaden its sourcing base.
For roadside food stalls, tea shops and small eateries, the increase can have a more direct impact on margins. These businesses generally operate with limited cash reserves and depend heavily on LPG for boiling, frying, steaming and bulk cooking. At the same time, their customers are often highly price-sensitive, making it difficult to immediately increase menu prices.
For example, a business using two cylinders a week would face an additional cylinder-cost burden of roughly ₹500 a month from a ₹62.50 increase, before considering any delivery or supply-related costs. Some operators may respond by adjusting menus, reducing operating hours, changing production schedules or using alternatives such as induction where practical. Passing the entire increase to customers, however, may not always be possible.
Restaurants and cloud kitchens face a broader cost equation. LPG is only one part of their operating expenses, alongside vegetables, edible oil, packaging, labour, rent and delivery-related costs. High-volume kitchens can feel the impact more sharply because cooking continues throughout the day. Caterers and banquet kitchens may face an additional challenge when events have already been priced or contracted before the LPG revision.
Restaurants may therefore look at selective menu-price adjustments rather than increasing prices across every dish. Menu engineering, better production planning, bulk procurement and greater use of energy-efficient equipment can also help reduce the impact.
Large hotels generally have more ways to manage short-term fuel-cost fluctuations because their revenues come from multiple segments, including rooms, restaurants, banquets, events and other services.
Energy audits can help hotels track LPG consumption outlet by outlet and identify areas where fuel use can be reduced. Centralised preparation of sauces, stocks, breads and semi-finished products can also prevent duplication across multiple kitchens. Hotels may also consider induction cooking, electric ovens, efficient burners, heat-recovery systems or piped natural gas where infrastructure and safety requirements allow.
Menu engineering can play another role. Hotels can promote dishes with stronger contribution margins, improve batch production and reduce food waste while maintaining the expected guest experience. For banquets and large events, gradual pricing adjustments may be considered instead of applying a separate and noticeable fuel surcharge to customers.
The absolute increase may appear small when viewed against the cost of a single cylinder. The larger concern for hospitality businesses is the cumulative effect of repeated cost increases. A kitchen using 20 cylinders a month would spend ₹1,250 more from a ₹62.50 increase per cylinder. A 100-cylinder operation would see an additional ₹6,250 before accounting for any other changes in logistics or supply costs.
For large hotels, these amounts can be distributed across several business divisions. For a small restaurant or food stall working on thin margins, the same increase can have a more immediate effect on profitability. This difference is important for understanding how the LPG hike may affect the hospitality sector. The same per-cylinder increase does not create the same business impact for every operator.
The direction of commercial LPG prices will depend partly on international supply conditions and the wider energy market. India's efforts to diversify LPG sourcing could provide greater supply flexibility, but alternative cargoes can involve longer transportation distances and different freight economics. Reuters reported that India is already seeking larger long-term supplies from the United States for 2027.
In the short term, hotels, restaurants and caterers are entering a period when demand can increase because of festivals, weddings and other events. That makes fuel efficiency more important even if LPG prices do not rise again.
For the hospitality industry, the October hike is therefore more than a monthly price revision. It is another reminder of how closely commercial kitchens are connected to international energy markets. From a roadside tea stall to a five-star hotel kitchen, businesses will have to balance fuel costs, menu pricing, operational efficiency and customer expectations as the festive season gets underway.
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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.
By Hariharan U
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.
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?
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.
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.
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.
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.
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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