MORBI, India — An industrial city responsible for manufacturing more than 80% of India’s ceramic tiles has experienced an unprecedented slowdown over recent weeks due to fuel supply disruptions.
The ongoing conflict in Iran has created severe shortages of natural gas needed to power the tile-making kilns in Morbi, while available fuel has become prohibitively expensive for manufacturers trying to remain competitive. The majority of natural gas supplies arrive through imports via the Strait of Hormuz.
Located in Gujarat state, Morbi has flourished as a key export hub thanks to its strategic location near Arabian Sea ports and access to local raw materials.
The energy crisis has forced many factory workers to seek jobs elsewhere or return to their home states. Only a minimal workforce remains to perform basic maintenance tasks at the shuttered facilities.
Hareshbhai Bhadja, a partner at manufacturing company GC Granito, explained the scope of the shutdown: “Out of the odd 650 or 700 manufacturing units, only four to five large ones are operational as they can afford to use the more expensive propane gas.”
A recent ceasefire agreement has sparked optimism among local manufacturers.
Several production facilities are preparing to restart operations following supply guarantees from Gujarat Gas, the state government’s gas utility. It remains uncertain whether fuel costs will return to pre-conflict levels.
