Morbi Tile Makers Face Production Shutdown Amid Rising PNG Prices
West Asia conflict: Morbi tile makers want to switch to PNG, but higher prices remain a hurdle
The Indian Express
Image: The Indian Express
Ceramics manufacturers in Morbi, Gujarat, have extended their shutdown until May 1 due to soaring piped natural gas (PNG) prices, which have made production financially unviable. The shutdown, initiated on March 17 due to a fuel supply crisis linked to the war in Iran, affects over four lakh workers in the region's tile industry.
- 01Morbi's tile manufacturers are facing a shutdown until May 1 due to high PNG prices.
- 02The industry has been affected by a fuel supply crisis stemming from geopolitical tensions in the Persian Gulf.
- 03Tile makers are now classified as non-regular PNG users, leading to significantly higher costs.
- 04Sanitaryware units, which use PNG, remain operational but are also feeling financial pressure.
- 05The industry is calling for government intervention to address the pricing disparity.
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Ceramics manufacturers in Morbi, Gujarat, have extended their shutdown until May 1 due to unsustainable piped natural gas (PNG) prices. The shutdown began on March 17 amid a fuel supply crisis linked to the ongoing conflict in Iran, which has disrupted propane-LPG imports from the Persian Gulf. Tile makers, who account for 90% of India's ₹75,000 crore ceramic industry, are struggling with new PNG prices that are nearly double what they previously paid for propane-LPG. Gujarat Gas Limited's pricing structure classifies tile makers as non-regular users, resulting in charges of ₹93 per cubic metre, compared to ₹52 for propane. This pricing disparity is causing financial strain, with tile units operating on thin margins. While sanitaryware units have remained operational, they too are facing rising costs for raw materials. The industry is urging government intervention to rectify the situation and stabilize the market.
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The shutdown of tile manufacturing in Morbi will lead to significant job losses and economic strain for workers who are already owed back pay.
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