Ceramic Units Face Loss of 50 Lakh to 1.5 Crore Each: Sharp Rise in Tile Prices Expected!

Morbi: The ongoing conflict between Iran and Israel has pushed Morbi’s world-famous ceramic industry into a deep financial crisis. With production halted for the last 1 month, the industry has seen a turnover of approximately 5,000 crore come to a standstill. Although ceramic units are set to resume operations from 15 April, consumers will now have to prepare for more expensive tiles.

Due to the production shutdown, every factory owner in Morbi is facing a massive loss ranging from 50 lakh to 1.50 crore. According to Manoj Ervadiya, President of the Ceramic Association, there are about 650 ceramic units operating in Morbi with an annual turnover of 60,000 to 70,000 crore, which has currently hit a roadblock. This economic blow is also impacting the associated paper mill industry.

The unbearable hike in gas prices remains the biggest challenge for the industry. Expensive fuel has led to a significant jump in production costs. Consequently, as industries gear up to restart on 15 April, manufacturers state that increasing tile prices will be unavoidable. Industry experts mention that given the fuel crisis and inflation, implementing this price hike is a necessity.

Previously, when gas prices became unbearable, ceramic industrialists gathered at the Gujarat Gas office to protest. Meetings were also held with high-ranking gas company officials in Gandhinagar to resolve the issue. However, gas remains very expensive, making it extremely difficult for the industry to return to its normal pace.

Export fronts have also become difficult for ceramic industrialists as war has disrupted shipping routes.

● More than 700 containers have returned from Kandla and Mundra ports in the last 1 month.

● Approximately 800 containers are stranded at various foreign ports.

● Due to these delays and obstructions, industrialists are bearing an additional financial burden of 50,000 to 1.50 lakh per container.

Following the excessive rise in gas prices, industrialists had earlier registered their protest at the Gujarat Gas office.

● Despite meetings with high-level officials in Gandhinagar, the current high prices continue to trouble manufacturers.

● Industrialists are currently seeking relief in gas prices as the current rates are unsustainable.

● Even if some relief is provided, production costs have already escalated, making a price hike for tiles mandatory.

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