Global Tensions Hit Morbi Industries As Gas Prices, Container Shortage Push Ceramic Sector Into Crisis
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Global tensions, rising fuel prices and a shortage of shipping containers have created serious challenges for Morbi’s ceramic and allied paper mill industries. Around 50 ceramic units have reportedly shut operations amid a sharp rise in natural and propane gas prices, higher raw material costs and logistical difficulties.
The crisis comes as the ceramic industry continues to grapple with the impact of international conflicts. After facing disruptions following the Russia-Ukraine war, manufacturers are now dealing with the fallout of tensions involving Iran and the US.
Rising Gas Prices Put Ceramic Units Under Pressure
Fuel is a critical component of ceramic manufacturing, and prices of natural and propane gas have been rising continuously for the past four months. The increase in fuel costs has pushed up overall production expenses, putting significant pressure on manufacturers.
The impact is also being felt in the domestic market, where demand for ceramic products has reportedly declined by around 25 per cent.
Container Shortage Hits Export-Oriented Units
A sharp increase in container freight costs has further compounded the problems faced by ceramic manufacturers, particularly units that depend entirely on exports.
Foreign buyers who previously sourced tiles from Morbi are reportedly turning to countries such as Spain, Italy and China. The shift has raised concerns over Morbi’s position in the global ceramic market.
With production costs increasing and export orders facing logistical hurdles, several units have reportedly been forced to suspend operations.
Paper Mills, Packaging Sector Also Feel The Impact
The slowdown in the ceramic industry has also affected paper mills and the packaging sector, which are closely linked to ceramic manufacturing.
Industry representatives said paper mills are facing challenges due to higher prices of waste paper and coal, while orders have also declined. Export activity has reportedly come to a halt for several units.
The slowdown across ceramic, paper mill and packaging industries is also raising concerns over the livelihoods of workers and artisans directly or indirectly dependent on these sectors.
Industry stakeholders said the situation remains a matter of concern as rising input costs, weak demand and disruptions in international trade continue to affect Morbi’s industrial ecosystem.
