Morbi Ceramic Industry Faces Shutdown Risk as War Disrupts Gas Supply

MORBI: The world-renowned ceramic industry of Morbi is facing a severe crisis as dark clouds of the ongoing conflict between Israel, the USA, and Iran loom large. Due to Iran's control over the Strait of Hormuz and the halting of vessels, gas and petroleum supplies from Gulf countries have been disrupted. This has led to an acute shortage of propane and natural gas in Morbi, sparking fears that the entire industry could shut down within a week.

The supply of gas and petroleum products from the Gulf has come to a standstill. Currently, companies supplying propane in Morbi have minimal stocks left, and it is highly likely that propane supply will be completely cut off starting Wednesday. In response to this critical situation, the Ceramic Association held a meeting with Gujarat Gas officials. However, the officials could not provide a clear or satisfactory answer regarding their current reserves.

Sources suggest that while Gujarat Gas will continue supply for 10 days, a 50% cut will be implemented after the first three days. Manufacturers have voiced that operating factories with a 50% supply cut is practically impossible.

Manoj Ervadiya, President of the Ceramic Association, stated that if the war situation does not improve and gas supplies are not restored, the entire Morbi ceramic cluster may have to shut down. The impact is already visible on the ground; preliminary reports suggest that 2 to 5 factories have already halted operations due to the lack of propane. This number is expected to rise rapidly if the issue remains unresolved.

According to Manoj Ervadiya, a significant portion of Morbi’s exports goes to GCC and Gulf countries. With vessels currently blocked in the Gulf, nearly 20% to 25% of exports have been suspended. Out of Morbi’s annual export turnover of approximately ₹16,000 to ₹18,000 crore, exports worth ₹400 to ₹500 crore have been directly affected.

Providing data on gas consumption, Haresh Bopaliya, President of the Ceramic Association, mentioned that approximately 65% to 70% of ceramic units in Morbi rely on propane gas. The remaining 30% use natural gas provided by Gujarat Gas. As propane stocks hit rock bottom, the majority of units are now staring at an immediate shutdown.

Former President of the Morbi Ceramic Association, Mukesh Kundariya, noted that the commercial propane stock allocated by the government is barely enough for the next 24 hours. Furthermore, while Gujarat Gas supplies 1.7 to 2 million cubic meters of natural gas daily, a massive 50% cut is expected within 3 to 4 days. He warned that if the war persists for 4 to 5 weeks, it could take at least two months for the ceramic industry to resume normal operations.

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