Over 400 ceramic factories in Morbi shut ops due to fuel crisis, set to reopen on April 15: Reports

Around 450 ceramic manufacturing units in Gujarat’s Morbi which together account for nearly 90% of India’s ₹75,000 crore ceramics industry have reportedly shut operations due to a severe fuel crisis, with the industry planning to resume production from April 15.

According to reports, the decision to halt operations for nearly a month was taken at a meeting of the Morbi Ceramics Manufacturers Association on Tuesday, as shortages of both key fuels propane and natural gas intensified sharply. Industry leaders said the supply situation has deteriorated rapidly in recent days, forcing units to suspend production.

The disruption is linked to the ongoing West Asia conflict that began on February 28, which has significantly impacted global oil and gas supply chains. The blockade of the Strait of Hormuz, a critical route for energy exports from Gulf Cooperation Council (GCC) countries has further worsened the crisis.

Morbi’s ceramic industry is heavily dependent on propane and natural gas to run its kilns. Nearly 500 units rely on propane, consuming about 55 lakh cubic metres daily, supplied through road tankers by IOCL, BPCL and HPCL via local distributors. Another 150 units use piped natural gas, with a daily consumption of around 25 lakh cubic metres, supplied by Gujarat Gas Limited.

Industry representatives said gas supply has dropped to nearly 50% of the requirement, making it unviable for many units to continue operations. According to association president Manoj Airwadia, the ongoing shutdown has already impacted thousands of workers, and if the crisis prolongs, it could affect the livelihoods of nearly one million people directly and indirectly linked to the sector.