Morbi and Thangadh Ceramic Clusters Struggle Amid West Asia Conflict
West Asia war: Morbi-Thangadh ceramic clusters gasp for gas, units shut, losses mount
The Economic TimesImage: The Economic Times
The ongoing war in West Asia has severely impacted the ceramic clusters of Morbi and Thangadh in Gujarat, India, causing factory shutdowns and significant losses. With gas supply disruptions and soaring prices, the industry is facing a crisis, leaving thousands of workers unemployed and manufacturers seeking urgent government support.
- 01Morbi and Thangadh are crucial ceramic production hubs, contributing 90% to global ceramics.
- 02Gas shortages and price hikes have forced many factories to shut down, impacting production and exports.
- 03Over 40,000 workers in Thangadh are currently unemployed due to factory closures.
- 04The total ceramics market in Morbi is valued at ₹60,000 crore, with exports worth ₹16,000 crore.
- 05Manufacturers are calling for government intervention to alleviate the crisis.
Advertisement
In-Article Ad
The war in West Asia has created a dire situation for the ceramic clusters of Morbi and Thangadh in Gujarat, India, which are pivotal to the global ceramics market. Since the conflict escalated on February 28, 2023, the industry has faced severe disruptions due to gas shortages and soaring prices. Ajay Marvania, President of the Sanitarywares Division of the Morbi Ceramic Manufacturers Association, reported that many factories were forced to shut down for a month due to unsustainable gas prices, which have risen from ₹41 to ₹70 per kilogram. As a result, Morbi's monthly business has plummeted from ₹6,000-7,000 crore to just ₹1,000 crore. In Thangadh, only 10% of the 250 factories remain operational, leaving over 40,000 workers unemployed. The local industry is now appealing for government support, including a reduction in the Goods and Services Tax (GST) on affordable sanitary ware. The situation remains uncertain, with manufacturers hoping for a return to normalcy once the conflict subsides.
Advertisement
In-Article Ad
The crisis in the ceramic industry is causing significant economic distress for thousands of workers and their families in Morbi and Thangadh, who rely on this sector for their livelihoods.
Advertisement
In-Article Ad
Reader Poll
What should be the government's priority to support the ceramic industry?
Connecting to poll...
Read the original article
Visit the source for the complete story.



