Gas on paper, shutdown on ground

Despite higher quotas, supply fails to reach ground Kolhapur: Despite official assurances and a 20 per cent increase in gas allocation for hotels and food processing units, operators in Kolhapur say supplies remain elusive. With distributors citing administrative curbs even as stocks are available, the crisis has pushed nearly 4,000 establishments to the brink — threatening 80,000 livelihoods and casting a shadow over the city’s tourism-dependent economy. The situation stands in contrast to...

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Despite higher quotas, supply fails to reach ground Kolhapur: Despite official assurances and a 20 per cent increase in gas allocation for hotels and food processing units, operators in Kolhapur say supplies remain elusive. With distributors citing administrative curbs even as stocks are available, the crisis has pushed nearly 4,000 establishments to the brink — threatening 80,000 livelihoods and casting a shadow over the city’s tourism-dependent economy. The situation stands in contrast to directions issued by Prime Minister Narendra Modi, who has emphasised that essential establishments should not face disruption in fuel and gas supplies. While policy decisions at the Centre and the state appear aligned to protect commercial users, implementation gaps at the district level have left hotel operators struggling to access basic fuel. Industry representatives allege that although gas distribution companies have confirmed adequate stock, supply is being withheld due to administrative restrictions. The lack of clarity and coordination has deepened uncertainty, with many operators warning that prolonged disruption could force them to suspend operations. Local Economy Kolhapur’s hospitality sector — comprising small eateries, mid-sized establishments and larger hotels — forms a critical pillar of the local economy. Beyond direct employment to nearly 80,000 workers, it sustains a wide network of suppliers, transporters and ancillary businesses. Any prolonged disruption in essential services such as gas, electricity and water, stakeholders point out, risks triggering a cascading economic impact. The origins of the current strain lie in global supply disruptions following tensions in the Gulf region, which prompted authorities to prioritise domestic LPG consumption. While commercial allocations were initially curtailed, subsequent policy revisions sought to restore balance by enhancing quotas for sectors such as hospitality and food processing. However, in Kolhapur, operators say these decisions have not translated into actual relief. No Response Compounding the crisis is the reported lack of administrative response. Industry members claim that attempts to reach district authorities have gone unanswered, leaving them without guidance or timelines for restoration of supply. “Gas is available, but supply is being denied citing administrative reasons. If this continues, we will be left with no option but to shut down operations,” said Sachin Shanbhag, a senior office-bearer of the Kolhapur Hotel Owners’ Association. Hotel operators also underline their longstanding role in public service, particularly during emergencies. From floods in Kolhapur to disasters beyond the state, the fraternity has repeatedly mobilised resources to provide food and relief — often at short notice and personal cost. During the Bhuj earthquake, Kolhapur-based operators were among the first to set up community kitchens for affected families. The current impasse, therefore, raises a broader question of administrative accountability. If the state can rely on the sector during crises, stakeholders argue, it must also ensure that the industry’s own operational needs are not neglected. Unless the supply chain is normalised quickly and gas is made available in line with declared quotas, the fallout could be severe. Apart from the immediate risk to thousands of livelihoods, Kolhapur’s tourism sector — still in a phase of recovery — could face a significant setback, undermining economic momentum in the region. Despite announcements by the Centre and the state to increase gas quotas for hotels and food processing units, local distributors are refusing supply, claiming the decision is limited to the national level. While they acknowledge that stock is available, supply continues to be denied citing prevailing conditions. Sachin Shanbhag, President, Kolhapur Hotel Owners’ Association

India bears the brunt: Nifty crashes 1,100, Sensex nosedives 3,900 points after US trade shock

Correspondent
Apr 7, 2025
2 min read

India woke up to a financial jolt this morning as its equity markets suffered their steepest fall in nearly a year, shaken by the ripple effects of US President Donald Trump’s aggressive new tariff regime. The Sensex plunged over 3,900 points at opening bell, while the Nifty tumbled more than 1,100 points, dragging Indian stocks to a 10-month low.

This sharp decline follows a global equity rout triggered by Trump's protectionist measures, which have sent panic waves across Asia and raised the spectre of a global recession. Investors dumped shares in a massive sell-off, with Indian benchmarks reacting sharply in early trade. The Sensex dropped to 71,425.01 — down 3,939.68 points — while Nifty slipped to 21,743.65, marking a 3.5% slide from the last session.

Adding to the pressure, the Indian rupee depreciated 30 paise to open at 85.74 against the US dollar.

India Among the Hardest Hit

Trump’s latest tariff hike — framed as a push to restore fairness to global trade — has imposed country-specific duties that go as high as 50%. India has been slapped with a 26% tariff, while a 10% baseline duty applies to all nations. This has set alarm bells ringing among Indian exporters and traders already struggling with global demand volatility.

President Trump, unfazed by the financial carnage, likened the move to a bitter but necessary cure. “Sometimes you need the medicine to fix something,” he told reporters earlier today.

Analysts Urge Economic Safeguards

Market experts believe that India's current market turmoil isn't rooted in domestic issues but is rather a consequence of being tightly woven into global investment flows.

“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows,” said Ajay Bagga, a noted market expert. “India will need a fiscal, monetary, and reform package to protect the domestic economy from this global economic winter that is threatening to settle in.”

Sunil Gurjar, SEBI-registered research analyst, warned that the Nifty50 index has breached its first support level and is approaching the next. "A further breakdown could worsen the trend and accelerate the fall," he cautioned.

Asian Markets Bleed

The tremors from Trump's announcement were first felt in Asia, with key markets suffering steep losses. China's stock markets fell over 4% amid retaliatory tariffs of 34% against the US. Hong Kong's Hang Seng nosedived more than 10%, while Japan’s Nikkei index fell 6.5% after plunging 8% earlier in the day. Taiwan saw a near-10% collapse, and Singapore dropped over 8%.

Wall Street Braces for Impact

US markets, though yet to open, appear set for a rough start. Futures contracts on the New York Stock Exchange are sharply down, suggesting heavy losses once trading resumes.

Market sentiment globally has turned bearish, with fears of a looming recession taking hold. Stephen Innes of SPI Asset Management described the scene as “free-fall mode,” noting, “Trump’s team isn’t blinking. The tariffs are being treated as a victory lap, not a bargaining chip.”