Morbi, a town in Gujarat, which serves as India's largest ceramics manufacturing hub, has seen a major halt in industrial activity as gas shortages linked to the ongoing Iran conflict continue to disrupt production, BBC reported.
Citing local manufacturers' association the report added that most factories in the region have remained shut for nearly a month due to the lack of essential fuel supplies.
According to the report, the town accounts for nearly 80% of India's ceramics production, including tiles and sanitaryware, and supplies products to markets across the Middle East, Africa and Europe.
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The shutdown has affected an industry valued at around Rs 750 billion, with Morbi at its centre, and has impacted approximately 400,000 workers associated with the sector.
Manufacturers cited by BBC have stated that operations were stopped after supplies of propane and natural gas, which are critical fuels for firing kilns at high temperatures, became constrained.
The disruption followed military strikes by the United States and Israel on Iran on Feb. 28, which triggered retaliation and affected shipping movements through the Strait of Hormuz, a key route used for transporting a significant portion of India's gas imports.
Explaining the situation, a manufacturer speaking to the news network said, "Nearly four in ten factories depend on propane, while the rest run on natural gas." Another industry representative noted, "Around 550 units have stopped production, while some factories using piped natural gas are still running depending on supply."
Overall, close to 80% of manufacturing units in Morbi, especially larger factories, have suspended operations.
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The shutdown is expected to continue until April 15, BBC reported citing Industry members who also pointed out that the sudden drop in fuel supply made it difficult to sustain kiln operations, which need to run continuously to avoid damage to machinery and unfinished goods.
Providing further details, a manufacturer told BBC that, "units that use propane have been forced to stop as supplies have run out. Though natural gas is still available, most factories using it have also paused operations due to unstable and unpredictable prices, making it difficult to fix product rates." According to the report, Morbi's nearly 3,000 ceramic traders and distributors are currently relying on existing stock, with no fresh production for at least a week.
Traders have reportedly warned that if the shutdown continues, shortages could begin to appear in the domestic market, with inventories expected to decline from April. The crisis has also severely affected workers, many of whom are migrant labourers from northern and eastern parts of India.
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With factories shut, several workers have started returning to their home states. Another worker told the BBC, that "If I stay here without work, I will not be able to survive." Another worker, who continues to stay back, said, "My employer is providing food and accommodation for now, but there is uncertainty about what will happen if the shutdown goes on for a long time."
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