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Morbi ceramics industry grinds to a halt amid fuel crisis
Nearly all factories in Morbi, Gujarat's ceramics hub, have suspended operations for nearly a month due to severe shortages of propane and natural gas, industry representatives confirmed on Thursday. The shutdown, triggered by disruptions in gas shipments through the Strait of Hormuz, has idled around 400,000 workers and threatens India's dominant position in global tile and sanitaryware exports.
Supply chain breakdown
Morbi accounts for approximately 80% of India's ceramics output, valued at 750 billion rupees ($8.1 billion). The sector relies heavily on propane and natural gas to fuel high-temperature kilns. According to Amit Prajapati, a local manufacturer, roughly 40% of factories depend on propane, while the remainder use piped natural gas supplied by state-run distributors.
Since late February, retaliatory strikes between the U.S., Israel, and Iran have paralyzed shipping routes critical to India's energy imports. While three Indian-flagged vessels carrying liquefied petroleum gas and crude oil reached Gujarat this week, 21 others remain stranded. Foreign Minister S. Jaishankar expressed hope that diplomatic talks with Iran would restore normalcy.
Government response and industry impact
In response to the crisis, authorities have prioritized gas allocations for households, healthcare, and agriculture. Mukesh Kundariya, an adviser to the Morbi Ceramics Manufacturers' Association, stated that 550 factories-about 80% of the region's production units-have ceased operations, with only a handful of facilities using piped gas remaining partially active.
The shutdown is expected to last until at least April 15, as manufacturers struggle to maintain continuous kiln operations. Prajapati noted that propane-dependent factories have been forced to close entirely, while those using natural gas face volatile pricing, complicating production planning.
Economic fallout and worker hardships
Morbi's ceramics sector supports approximately 400,000 workers, many of whom are migrant laborers from northern and eastern India. With factories idle, thousands have begun returning home, while others remain in limbo. Sachin Parashar, a migrant worker, told regional media, "I will have to go hungry if I continue staying here without work." Another worker, Bhumi Kumar, said his employer had provided food and shelter but expressed uncertainty about long-term prospects.
Traders and distributors, numbering around 3,000 in Morbi, are relying on existing stockpiles, but warn that domestic shortages could emerge by April if production does not resume. Bhavin Dharodiya, a tile trader, cautioned that export orders may face delays, with prices likely to rise if the fuel crisis persists.
Outlook and recovery challenges
Industry leaders emphasize that prolonged disruptions could damage equipment and unfinished products, further delaying recovery. While existing inventories may soften the immediate blow, the situation could deteriorate if the shutdown extends beyond mid-April. The broader implications for India's ceramics exports-particularly to the Middle East, Africa, and Europe-remain uncertain as manufacturers await clarity on fuel supplies.
