Ceramic industry in Gujarat’s Morbi stares at shutdown as West Asia conflict disrupts gas supply
The ceramics industry in Gujarat’s Morbi is facing a potential shutdown in the next few days due to disruption of gas supplies from the Gulf region due to the ongoing war-like situation involving Israel, the US and Iran, industry representatives said on Wednesday (March 4, 2026).
West Asia is facing military turmoil, with US and Israeli forces at war against Iran, which has blocked the Strait of Hormuz, a key transit point for ships. The war has intensified since Iran’s supreme leader, Ayatollah Ali Khamenei, was killed in US-led attacks on Saturday.
The ceramics industry is heavily dependent on propane or natural gas for its operations, particularly in firing kilns and drying processes.
Manoj Arvadiya, President of Morbi Ceramic Manufacturers Association (Vitrified Tiles Division), said that oil and gas shipments from Gulf countries were affected and the shipments were stuck in the Strait of Hormuz under the control of Iran.
“The main fuel of the Morbi ceramics industry is gas. Due to the current situation in the Strait of Hormuz, gas supply to the industry has stopped,” he said.
He said companies that use propane gas only have a maximum stock of three to four days.
Gujarat Gas Ltd. Regarding CNG supplied by , he said the estimated current stock will last for about a week.
“If the war situation continues, we will face a situation in the next week or 10 days where the entire ceramics industry will have to suspend its activities. We foresee this possibility.”
Expressing similar concerns, Morbi Ceramic Manufacturers Association (Wall Tile Division) president Haresh Bopaliya said that the natural gas and propane supply chain has been disrupted, affecting timely delivery of fuel to the units.
“The natural gas and propane supply chain is broken. Therefore, the supply that companies need to receive is not happening on time,” Mr. Bopaliya said.
He noted that propane stock in companies is likely to last only two to three days, while natural gas supply from Gujarat Gas is estimated to continue for about 10 days.
“If we do not buy propane and natural gas from now on, we will face the situation of shutting down the industry,” he said.
About 600 pieces
Mr Bopaliya said Morbi currently has about 600 ceramic units and all of them may have to shut down if gas supply remains erratic.
He said Morbi’s ceramic units employ two to three lakh workers and they would face difficulties in case of closure.
Ceramics manufacturer Manibhai Bavarva said most of the units in Morbi are dependent on propane and natural gas, with about 80% using propane.
He said propane supplies had already been disrupted following the Feb. 23 accident at a port in Saudi Arabia.
“So the propane supply has been interrupted since then. We were hoping things would improve a little by March 10,” Mr. Bavarva said.
“Now due to this war, propane supplies have almost stopped. Gas supplies could stop completely this evening or tomorrow afternoon, triggering an industry-wide shutdown,” he added.
Mukesh Kundariya, former president of the association, said that the war-like situation in the Gulf region has led to shortage in fuel supply, including propane, LPG and natural gas, all of which are sourced from the region.
Mr Kundariya said the duration of the conflict would determine the length of the closure.
“If the war continues for a week or two now, this sector is likely to be closed for 30 to 45 days. If it continues for four weeks, the sector will not be able to restart for two months,” he said.
He also warned that fuel prices could rise sharply once supplies resume.
According to him, if fuel prices increase in the future, it will become extremely difficult for the units to survive.
Highlighting the employment impact, Mr. Kundariya said that around four lakh workers are directly and indirectly dependent on the ceramics industry in Morbi.
“If the industry closes, it will definitely have a direct impact on workers,” he said.
It was published – 05 March 2026 04:11 IST
