Navi Mumbai: The spiralling war in West Asia and disruption in ship movement via the Strait of Hormuz is leaving a heavy toll on the Navi Mumbai-Panvel-Uran economic corridor. A large chunk of the 4,500 factories in the area are staring at closure by next week due to shortage and sharp escalation in prices of raw materials, while migrant labourers working in these factories are struggling to find cooked food due to canteen closures. At the Jawaharlal Nehru Port Authority (JNPA), thousands of export-bound containers are stranded at terminals, triggering price volatility at the Agricultural Produce Market Committee (APMC) in Vashi.
Industries hit
“It has only been two weeks since the war started, but it feels like the bombs are falling here, not there,” said KR Gopi, president, TTC-MIDC Industries Association (TMIA).
Increasing uncertainty on maritime routes has delayed the arrival of essential raw materials and components, leaving factories with exhausted inventories and pushing up prices significantly, Gopi said.
Stainless steel prices have increased by nearly ₹20 per kilogram, jumping from around ₹215/kg two weeks ago to ₹235/kg now, while in the plastics sector, granule prices have shot up 50% — from ₹100/kg to ₹150 per kg.
“Most factories here are small-scale units operating on 5% margins. Even a 10% hike in costs makes existing contracts unviable,” Gopi said.
Manufacturers said export orders to the United States and Europe too were frozen due to the disruption in shipping routes.
“Exports are not happening as containers are not moving. This is crippling every sector,” Gopi said.
With manufacturers warning of mass closures by next week due to a raw material vacuum, more than 500,000 people who work in the factories are staring at an uncertain future.
The situation is particularly dire in the Taloja MIDC and Panvel areas, where many factory canteens and eateries that serve daily meals to workers have shut shop, no longer able to access or afford LPG cylinders.
Government-imposed restrictions on commercial LPG cylinders have birthed a predatory black market in the region and pushed up prices of 5-kg LPG cylinders from ₹400 to ₹800-900.
Nearly 80% of the factory canteens and eateries in the region have been unable to secure gas and many have already suspended operations, leaving over 20,000 migrant contract workers in villages like Pendhar, Ghot, and Valap in the lurch, factory owners in the area said.
Most migrant workers lack domestic gas connections and depend entirely on canteens, they added.
Jayshree Katkar, former secretary, Taloja Manufacturers Association (TMA), warned that if workers have to leave because they cannot eat, the entire industrial system will collapse.
“Nearly 70% of Taloja’s production is dependent on contract labour. The government must focus on stopping black marketing and ensuring affordable gas. Industries must also consider alternatives like induction stoves,” Katkar said.
Crises at JNPA, APMC
The industrial slowdown is tied directly to disruptions at the JNPA in Uran. Logistics operators said roughly 3,200 export-bound containers—including 1,000 carrying perishable items—were currently stranded at terminals. At least 14 major vessel calls had been skipped or delayed, prompting shipping lines to introduce emergency fuel surcharges of up to $180 per container, they said.
To mitigate these costs, the JNPA has implemented a 100% waiver on ground rent and dwell-time for 15 days, alongside an 80% waiver on reefer charges, said Gaurav Dayal, Chairperson, JNPA.
“JNPA stands firmly with the export-import community. Our priority is to ensure continuity of trade,” Dayal said.
The maritime freeze has, in turn, upended the APMC wholesale market at Vashi. The halt in import of Iranian apples has forced a reliance on expensive stock from South Africa and Poland, pushing prices from ₹100/kg to as high as ₹300/kg.
“Apple prices in India were already very high this year. Due to this war, prices have increased further by up to 20%,” said apple importer Rohan Ursal.
Conversely, a freeze on exports to the Gulf has trapped domestic summer fruits, causing watermelon prices to crash from ₹40/kg to ₹15/kg and muskmelons from ₹50/kg to ₹20/kg, according to trader Prabhakar Chandane. Pomegranates remain stable at ₹130– ₹150/kg due to strong domestic demand, Chandane said.