West Asia conflict triggers crisis for Haryana’s footwear and leather hubs

Haryana’s industrial sector, particularly the globally recognized footwear and leather clusters of Bahadurgarh and Faridabad, has entered a period of severe distress as the escalating conflict in West Asia chokes the flow of energy and essential raw materials. What began as a localized supply ripple has rapidly transformed into a systemic crisis, threatening to dismantle the production capabilities of a region that serves as a cornerstone for India’s non-leather footwear market.

Dormant Manufacturing Hubs

The crisis is most visible in Bahadurgarh, a manufacturing powerhouse responsible for over 60% of India’s non-leather footwear production. In a matter of days, the hub has gone from high-capacity operation to a state of forced dormancy, with approximately 100 units already pulling down their shutters. The primary catalyst for this sudden halt is the disappearance of commercial LPG, which serves as the lifeblood for industrial boilers used in molding and precision heating. As the conflict in West Asia intensifies, the cost of these cylinders has surged by 20%, yet even at these inflated prices, supply has remained virtually non-existent, leaving factory owners in a desperate scramble to fulfill existing export commitments.

Global Chemical Supply Crisis

Beyond the immediate energy shortage lies a more complex and potentially more damaging disruption in the procurement of raw materials. The footwear and leather sectors are heavily dependent on specialized chemicals, polymers, and tanning agents sourced directly from Saudi Arabia and the broader Gulf region. Industrialists report that the cost of these essential inputs has skyrocketed by 40% to 70% within a week. This storm of rising costs and physical scarcity has halted the production of soles and adhesives, as shipping lanes remain clogged or rerouted. Industry veterans warn that even an immediate cessation of hostilities would not provide instant relief, as the backlog in the global supply chain could take months to untangle.

Regulatory Constraints & Depleting Safety Stocks

The situation is further complicated by the strict environmental mandates governing the National Capital Region (NCR). In hubs like Faridabad and Gurugram, where thousands of MSMEs operate, the use of coal or heavy oils is strictly prohibited to curb pollution. This leaves manufacturers with no legal alternative to the now-unavailable cleaner fuels like LPG and CNG. While many factories have stayed afloat using safety stocks of raw materials and fuel, these reserves are estimated to last only a few more days. Once these inventories are exhausted, the industry faces a total standstill, with nearly 15,000 units across the automotive, garment, and footwear sectors standing on the precipice of closure.

Plea for State Intervention

The ripples of this manufacturing freeze are now being felt in the counting houses of rice and textile exporters in Panipat and Karnal, but the footwear sector remains the most vulnerable to long-term damage. Export orders are being cancelled as buyers in Europe and West Asia lose confidence in delivery timelines, while domestic liquidity is tightening due to payments being locked in transit. In response, bodies such as the Haryana Chamber of Commerce and Industry have launched an urgent appeal to the Union and State governments. The industry is seeking a dual-pronged intervention: the emergency prioritization of fuel for export-oriented clusters and a temporary relaxation of NCR fuel norms to allow the use of biofuels, ensuring that the state's industrial engine does not grind to a permanent halt.