Ludhiana: A severe shortage of liquefied petroleum gas (LPG) fuelled by escalating Middle East tensions has pushed North India’s industrial heartland to the brink of collapse, with manufacturing leaders warning of mass layoffs as factories begin to shutter.The supply crunch has paralyzed micro, small, and medium enterprises (MSMEs) across Punjab’s industrial clusters, including Ludhiana and Mandi Gobindgarh. Industry heads report that critical sectors such as forging and rolling mills have already halted operations, leaving thousands of daily-wage workers idle.A Sector in CrisisK K Garg, president of the Induction Furnace Association of India, described the situation as “extremely alarming”, noting that the sudden disappearance of LPG stocks has left smaller players unable to survive. “Industries are shutting down because LPG is not available,” Garg said. “In my own unit, where we consume nearly 100 tonnes of gas, 1,000 workers have become idle. If the mills shut down, how will workers get salaries?”Garg further alleged that while large-scale industrial players continue to receive restricted supplies, MSMEs are being priced out by a burgeoning black market. He argued that industrial fuel should be classified as an “essential service” alongside hospitals to protect the livelihoods of hundreds of thousands of employees.The Energy TrapThe crisis is exacerbated by a historical shift in energy policy. Over the past several years, many Punjab manufacturers transitioned from electricity to LPG, encouraged by the govt to adopt more cost-effective fuels amidst persistent power outages. Harsimerjit Singh Lucky, president of the United Cycle and Parts Manufacturers Association (UCPMA), said this reliance has now become a trap. “Electricity shortages pushed industries to move to LPG for heat treatment,” Lucky said. “Now that supply has been curtailed, it is not possible to shift back to electricity overnight.”Key manufacturing processes like tempering, hardening, annealing, and moulding rely almost exclusively on LPG. Lucky warned that while large industries may be managing the shortfall, the MSME sector is “stuck completely”.Widespread DisruptionsThe “chain reaction” of the shortage is being felt across the manufacturing ecosystem in sectors such as fasteners and engineering, besides steel processing. Narinder Bhamra, president of the Fasteners Manufacturers Association of India, warned that many units have only 48 hours of stock remaining. Without gas for coating and finishing, production lines will freeze. Atul Bharat, a rolling mill owner in Mandi Gobindgarh, described the crisis as “unexpected” and urged immediate government intervention to prevent long-term economic repercussions.Geopolitical PleasAs the supply chain remains strained, some industrial leaders are looking beyond domestic policy for a solution. Bhamra urged the Indian govt to join an international coalition to pressure global powers, specifically the United States, to de-escalate the conflict in the Middle East and restore global energy stability.
