Over 100 Morbi’s ceramic units shut down, 5,000 workers lose jobs amid Iran war

Escalating tensions involving Iran, Israel and the United States in the Middle East have begun to impact industries in Morbi, widely regarded as the world’s second-largest ceramic hub. Disruptions in maritime routes and a growing gas shortage have created a crisis for the city’s ceramic and paper manufacturing sectors.

Industrial representatives said restrictions on movement along the Strait of Hormuz shipping route have severely affected gas supply to Morbi’s ceramic units, forcing several factories to halt operations.

Manoj Airwadia, president of the Ceramic Association, said nearly 100 ceramic units have already shut down due to the supply crisis. As a result, around 5,000 workers have lost their jobs so far.

He warned that if the situation does not improve within the next 10 days, the remaining 1,100 ceramic units in the region could also be forced to close. 

“At present, we are receiving only about 50% of the required gas supply from Gujarat Gas,” Airwadia said. He added that if all units are forced to shut down, the livelihoods of nearly one million people directly and indirectly associated with the industry could be affected.

The crisis has also begun to impact Morbi’s paper mill industry. According to Shailesh Patel, president of the Paper Mill Association, the import of raw materials has been disrupted due to the closure of key shipping routes.

Export costs have risen sharply, with freight charges increasing by around $2,000. In addition, the price of coal has risen by approximately ₹1,000 per tonne, further increasing operational costs.

Morbi has 52 paper mills with a combined annual turnover of about ₹5,000 crore, which industry leaders say is now under threat.

Industrialists said exports to Gulf countries and parts of Europe have slowed significantly, with new orders being halted and several export consignments suspended.

Industry representatives said they are currently adopting a ‘wait and watch’ approach, but warned that if the conflict continues for another week, both the ceramic and paper industries in Morbi could face a complete shutdown.