Middle East war impact: Vegetable prices crash in Kolar as hotels shut due to LPG shortage

Kolar: The economic ripple effects of the ongoing conflict between Iran and Israel are now being felt far beyond the Middle East, reaching sectors in Karnataka as well. After severely affecting the hotel industry, the crisis is now beginning to impact the agricultural sector, particularly vegetable farmers in districts like Kolar.

Disruptions in the supply of commercial LPG cylinders, reportedly linked to global energy uncertainties triggered by the conflict, have forced many hotels and eateries across Karnataka to temporarily shut down operations. Major cities including Bengaluru as well as smaller districts such as Kolar have witnessed a noticeable slowdown in the food service sector due to the shortage.

The closure of hotels and food stalls has significantly reduced demand for vegetables, which has directly affected farmers and traders. According to market sources, nearly 60 percent of vegetable consumption typically comes from the hotel and catering industry. With restaurants remaining closed or operating with limited menus, this major source of demand has suddenly disappeared.

The impact is clearly visible at the Kolar Agricultural Produce Market Committee (APMC) yard. Traders say vegetables that were earlier sold for ₹40 to ₹50 per kilogram are now being sold for just ₹10 to ₹20. Prices of some vegetables have dropped even further.

Cabbage, which previously fetched higher rates, is now selling for just ₹2 to ₹3 per kilogram, while cauliflower is being sold between ₹5 and ₹8. Other vegetables including capsicum, ridge gourd, bajji chillies, sweet corn, carrot and brinjal have also witnessed a steep decline in prices.

Traders point out that the closure of small eateries that prepare popular snacks and fast foods such as bajji, bonda, gobi manchurian, noodles and fried rice has played a major role in reducing demand. Many of these small food outlets rely heavily on commercial LPG cylinders, and the ongoing shortage has forced them to suspend operations temporarily.

Farmers say the situation is particularly distressing because vegetable cultivation requires significant investment. Many growers had spent lakhs of rupees preparing their fields and cultivating crops during the summer season, expecting good returns as vegetable demand usually rises during this period.

However, the sudden crash in prices has left farmers struggling to recover even their production costs. Several farmers say they are being forced to sell their produce at extremely low prices due to the lack of buyers in the market.

Traders also point out that the situation is not limited to Karnataka alone. Similar conditions are reportedly being observed in neighbouring states where vegetable prices have also dropped due to reduced demand from the hotel industry.

Farmers say that under normal circumstances, vegetable prices tend to rise during peak summer when supply is limited and demand increases. But the current global uncertainty triggered by the Iran-Israel conflict has disrupted supply chains and market demand, negatively affecting agricultural markets across the country.

Vegetable traders believe that prices will stabilise only when the hotel industry resumes normal operations and commercial LPG supply improves. Farmers and traders have jointly urged the government to intervene quickly and provide support measures to prevent further financial losses to the farming community.