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Prayagraj: Even as the Union government claims that industrial LPG supplies remain largely unaffected by the US-Israel war in West Asia, exporters and factory owners across Uttar Pradesh say there is a crisis and that it has already begun to disrupt production, stall orders and push up raw material and transport costs.

“In Dada Nagar, samosa sales in the evening have dropped to about 25% of what they used to be. It has become difficult to even make samosas due to a shortage of LPG cylinders,” Vijay Kapoor, chairman of the Cooperative Estate in Kanpur, told The Wire. The Cooperative Estate in Kanpur’s Dada Nagar is a consortium of 2500 factories, and has been a registered body since 1959.

On March 26, 2026, Kapoor, along with 44 other Kanpur-based businessmen representing industrial clusters such as Dada Nagar, Panki and Raniya, addressed a press conference. The factory owners – many of whom depend on petroleum-based raw materials – flagged their immediate concerns amid the choking of the Strait of Hormuz, a key point for India’s energy supply.

“Our demand from the administration is that a relief package be announced. Also, if the deadlines for the payment of certain taxes such as GST [Goods and Services Tax] can be extended, it will give us some time to recover,” Kapoor told local reporters, while outlining the impact of the conflict on industries in the city.

According to Kapoor, the ongoing war has severely affected Kanpur’s industries. In the city, which has 17,444 registered industrial units as per government data, about 50% of factories have shut down, another 30% are on the verge of closure, and the remaining 20% are operating at reduced capacity.

Speaking with The Wire, Kapoor, who has also been a member of the Bharatiya Janata Party since 2023, said: “The condition of labourers is really bad. We have been running a community kitchen that caters to 800 labourers daily at Rs 5 per plate.” 

“Prices of petroleum-based raw materials have gone up by 80%. Plastic granules [finely grained plastic particles used in making packaging material, chairs, bottles, refrigerator, syringe, auto parts, etc.] for example, which earlier used to cost Rs 110 per kg are now priced at Rs 180 per kg. What is shocking is that even the cost of packing material has gone up,” he added.

Workers line up at the community kitchen in Kanpur. Photo: Video Screengrab/Akanksha Kumar

 A formal press note dated April 2, following a meeting  of the Informal Group of Ministers (IGoM) set up to monitor the West Asia situation and chaired by Defence Minister Rajnath Singh, stated: “The IGoM........

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