The state government said wages for unskilled workers would rise to about $165 per month from roughly $120, effective April 1, marking the first such policy move in response to the economic fallout from the ongoing U.S.-Israel-Iran war.

The decision followed clashes between police and workers in Manesar, located near New Delhi and home to major manufacturing facilities including Maruti Suzuki and numerous supplier units. Authorities urged workers to resume duties peacefully after the announcement.

Workers said surging food prices, driven by disrupted gas supplies, had strained household budgets. India, the world’s second-largest importer of liquefied petroleum gas, is facing one of its most severe supply disruptions in decades, prompting the government to prioritize household consumption over industrial use.

The wage hike is expected to ease pressure on workers but add to cost burdens for automakers already grappling with higher raw material prices. Companies such as Tata Motors and Mahindra & Mahindra have raised vehicle prices, while Maruti has indicated similar steps may follow.

Industrial activity in Manesar was partially disrupted as workers boycotted shifts and staged protests. Employees reported that food costs had nearly doubled, with some migrant workers returning to their home villages due to rising expenses and uncertain supplies.

Suppliers including Munjal Showa said production was affected, while firms such as Roop Polymers reported limited disruption and a return to normal operations after the protests subsided.India’s auto sector relies heavily on migrant labor, with millions traveling to industrial clusters for work.

Industry groups warned that retaining workers has become a priority, with some companies offering meals and bonuses to prevent further departures.

Executives said supply chains could take weeks to stabilize even if geopolitical tensions ease, as disruptions to energy supplies continue to ripple through manufacturing and labor markets.

At a crowded platform in Anand Vihar railway station in Delhi, 35-year-old Raju Prasad and his family prepare to leave the capital after months of struggling to secure basic necessities. Having migrated from Uttar Pradesh less than a year ago in search of work, Prasad now says the rising cost of food and an acute shortage of cooking fuel have made it impossible for his family to survive in the city.

Prasad, who worked as a ragpicker alongside his wife, said the family earned about 500 rupees per day through long hours of manual labour. However, the depletion of their cooking gas supply nearly two weeks ago marked a turning point. With no access to affordable replacements and limited alternatives, their savings were quickly exhausted. He said the family initially resorted to collecting firewood, but even that option has since run out, forcing them to return to their village in Gorakhpur.

The situation reflects a broader trend unfolding across urban centres in India, where supply disruptions linked to the ongoing geopolitical tensions in the Middle East have driven up fuel prices and reduced availability. The shortage of liquefied petroleum gas (LPG), widely used for cooking in urban households and small businesses, has had cascading effects on food access and affordability, particularly among migrant workers and low-income groups.

In the same railway station, 25-year-old Sarfaraz, a construction worker from Bihar, waits for funds from his family to purchase a ticket home. Employed at the construction site of the Jewar Noida International Airport, he said his daily wage of around 550 rupees was no longer sufficient to cover rising living costs. His gas supply ran out nearly 20 days ago, and he has been unable to secure a replacement due to both shortages and sharply inflated prices in informal markets.

Sarfaraz said the cost of a gas cylinder has increased from approximately 900 rupees to as high as 4,500 rupees in the black market, placing it beyond reach for most daily wage earners. He added that food prices outside have also doubled, limiting access to even basic meals. “I’ve not had proper food for the past two days,” he said, noting that his savings had been depleted.

Urban food systems in cities such as Delhi rely heavily on a dense network of small eateries, roadside vendors, and informal food services that depend on LPG for daily operations. The shortage has disrupted these networks, leading to closures, reduced menus, and higher prices. This has disproportionately affected migrant workers, students, and other low-income residents who depend on inexpensive prepared food rather than home cooking.Restaurant owners report significant operational challenges.

Anil, who has managed a small restaurant in Nehru Place for three decades, said he has never experienced a similar disruption. He confirmed that rising input costs have forced him to increase menu prices while removing several items. He has also reverted to traditional cooking methods using a chulha, or open-fire stove, which is slower and less efficient.

Anil added that declining customer footfall and higher operational costs are putting pressure on his business and workforce. With around 10 employees dependent on the establishment, he said prolonged disruption could lead to job losses if conditions do not improve.

Government representatives acknowledge supply constraints but maintain that efforts are underway to stabilize distribution. Praveen Shankar Kapoor, spokesperson for the Bharatiya Janata Party in Delhi, said authorities are working to address shortages in both domestic and commercial LPG supply chains. He stated that while consumers using formal booking systems are receiving cylinders, smaller users particularly those relying on 5kg cylinders are facing greater challenges.

Kapoor noted that migrant workers and students often fall outside the formal distribution framework, as they are typically not registered under domestic gas consumer schemes. This has left them dependent on informal markets where prices have surged.Students have also reported significant disruption.

At Jamia Millia Islamia, many students from low-income backgrounds depend on shared accommodation and affordable canteen services.

Farheen Naaz, a media student from West Bengal, said she has not had access to cooking gas for 10 days and has been skipping meals as a result. She added that several university canteens have shut down, while those still operating have raised prices.

Naaz said the situation is affecting the health of students, particularly those living in shared housing arrangements. In her accommodation, which houses around 50 women, residents are facing similar constraints due to both fuel shortages and rising food costs.

The shortage has also affected markets for alternative cooking solutions. Retailers report a sharp increase in demand for electric appliances such as induction cooktops and rice cookers. Ahmad, a wholesale trader at ZamZam Crockery, said prices for induction stoves have risen from around 1,300 rupees to 5,000 rupees. He attributed the increase to upstream supply constraints and higher input costs, adding that prices for many electrical cooking appliances have risen significantly.

The convergence of fuel shortages, rising food prices, and limited access to affordable alternatives has triggered a reverse migration pattern in urban centres. Migrant workers, who form a substantial portion of the informal workforce in cities like Delhi, are increasingly returning to their home villages where food access is relatively more secure and traditional cooking methods remain viable.

At railway stations, scenes of families departing with limited belongings have become more frequent. For many, the decision to leave reflects not only economic strain but also the breakdown of essential urban support systems that sustain daily life for low-income populations.

As Sarfaraz continues to wait for funds to complete his journey home, he checks his phone repeatedly, hoping to join others boarding trains out of the city. His situation underscores the immediate pressures faced by migrant workers, whose livelihoods are closely tied to volatile urban conditions and limited social safety nets.