The ongoing energy crisis in the Middle East has severely impacted India’s ceramic hub in Morbi, forcing many manufacturers to halt production due to LPG shortages and rising fuel costs.
The continuous crisis in the Middle East has caused an energy deficit that has led hundreds of ceramic manufacturers in Morbi, India’s $6.5 billion ceramics manufacturing heartland, to stop production.
Impact on Morbi’s Ceramic Industry
A 200-meter-long propane-powered kiln that typically runs continuously has stopped working at a large factory near Morbi. While a tiny crew of workers cleans the final batches created three weeks ago, thick layers of dust now blanket the pressing and grinding machines.
“We are suffering a lot,” stated tile unit owner Kishor Dulera, who closed three facilities in early March and sent hundreds of employees home.
🏭 Morbi Industry Crisis
- Region: Morbi, Gujarat
- Industry Value: $6.5 billion
- Cause: LPG & energy shortage
- Shutdown: Hundreds of factories
- Workers Affected: Thousands unemployed
- Key Issue: Halted kiln operations
LPG Supply Crisis and Global Impact
About 60% of India’s liquefied petroleum gas (LPG) comes from imports, the majority of which cross the Strait of Hormuz. India is the fourth-largest economy in the world. This vital waterway has been shut by recent US-Israeli strikes on Iran, interrupting the world’s energy supplies.
Industries now have less access to LPG since the Indian government has prioritized it for homes. As a result, industries like ceramics, plastics, and stainless steel have reduced production.
Factory Closures and Financial Pressure
More than 400 businesses have closed as a result of the gas supply chain being “broken,” according to Manoj Arvadiya, head of Morbi’s local industrial organization. He clarified that since emergency shutdowns might harm gear, it is essential to keep kilns operating.
The business produced 30,000 tiles a day, according to Hitesh Detroja, whose Lexus Granito unit halted. He called the halt a “disaster” and said he struggles to pay fixed costs and $74,000 in monthly loans.
⚠️ Challenges Faced by Workers
- Job Loss: Factory shutdowns
- Uncertainty: Workers confused about future
- Income Loss: No wages during closure
- Emotional Impact: Stress & insecurity
- Industry Issue: High fuel dependency
- Key Concern: Economic instability
Government Measures and Alternative Solutions
The energy crisis has also had an impact on employees. “We are perplexed about what to do – whether we should go home, or not,” stated Bunty Goswami, a 29-year-old worker at a closed factory.
By boosting local LPG production, setting up restricted tanker shipments, and importing fresh cargoes from Australia and Russia, the government has taken steps to alleviate the supply shortage. In order to fulfill client orders, some producers, such as Jitendra Aghara of Simpolo Tiles, have continued production by buying propane for more than twice the pre-war price.
Due to the availability of clay and transportation, Morbi’s tile industry expanded, but it is still mostly dependent on imported energy. Although businesses like Reliance Industries are creating green hydrogen production to lessen reliance on LPG, electric or hybrid kilns are still uncommon, and alternative fuels cannot currently completely replace gas.
“If now we suffer a loss for two to three months, in the future we will get it back,” Aghara continued, underscoring the industry’s tenacity in the face of persistent difficulties.
Disclaimer: This article is for informational purposes only. It is based on reported developments and does not represent any official or financial advice.
