West Asia war digest, March 18: Stories tracking the economic fallout

West Asia war deepens economic strain as LPG shortages, LNG risks, shipping costs and polymer spikes ripple through India's energy and trade chains

The widening West Asia crisis is now rippling through India’s energy, trade and commodity chains, with the sharpest stress visible in LPG, LNG, shipping, plastics and tea.

 

Business Standard's coverage today tracks these emerging risks and maps the economic implications of the crisis.

 

Take a look at our coverage:

 

1. India’s LPG supply remains vulnerable as West Asia disruptions tighten imports. The government has flagged supply concerns even as domestic production has risen, with India still reliant on the region for nearly 90 per cent of imports and 60 per cent of demand. Shubhangi Mathur reports that refineries are running at high capacity, vessels are arriving, and consumers are being nudged towards natural gas to ease pressure.

 

 

2. The LPG shortage is already visible on the ground in Delhi-NCR, with long queues and delayed refills. Households are struggling to access cylinders, turning to informal markets or alternative fuels as supply disruptions deepen. Saket Kumar reports that availability remains uneven, with some areas stabilising while others face severe backlogs and agency closures.

 

3. India is building a ₹600 crore LNG war chest to shield fertiliser output ahead of kharif. The key risk is a sharp drop in gas availability that could hit urea production just as seasonal demand peaks. Sanjeeb Mukherjee explains that plants are advancing maintenance shutdowns, increasing spot LNG purchases and fast-tracking fertiliser imports to maintain supply.

 

4. Rising war-risk premiums are pushing India to revive a domestic maritime insurance plan. Higher insurance costs are emerging as a key pressure point for exporters and shipping lines amid the conflict. Dhruvaksh Saha reports that the government is revisiting a national Protection and Indemnity entity, while also managing stuck cargo and repatriating Indian sailors.

 

5. Concor has cut storage and logistics charges to ease exporter distress from disrupted shipping routes. The move aims to reduce cost pressures as containers remain stranded and freight uncertainty rises. The Centre has also allowed temporary storage of foreign cargo at Indian ports, potentially boosting transshipment activity, reports Dhruvaksh Saha.

 

6. India’s plastic-processing sector is facing shutdowns as polymer prices surge up to 70 per cent. The spike in petrochemical costs and supply uncertainty is making operations unviable for MSMEs across states. Hemant Kumar Rout reports that over half of units have halted production, with industry warning of job losses and wider supply-chain disruption.

 

7. Darjeeling’s premium first flush tea crop is at risk due to shortages of commercial LPG. Fuel curbs could disrupt processing during the most valuable harvest period, threatening exports and revenues. Ishita Ayan Dutt writes that planters have sought urgent intervention, warning of shutdowns and possible shifts back to coal if supplies do not resume.

 

8. High oil prices from the conflict could paradoxically strengthen Iran’s economy. The core argument is that elevated crude prices are generating a significant revenue windfall despite ongoing conflict. In his opinion column, Shankar Sharma argues that sustained high prices could boost Iran’s fiscal position, even as oil-importing countries bear the economic strain.