MORBI (Wednesday, March 4, 2026) — The ceramic industry in Morbi, Gujarat—the world’s second-largest ceramic hub—is facing an imminent production collapse as the escalating West Asia conflict chokes off critical gas supplies. Industry leaders warned on Wednesday that hundreds of factories may be forced to suspend operations within the next 48 to 72 hours if the energy blockade persists.
The Energy Chokepoint: Strait of Hormuz
The crisis stems from the effective closure of the Strait of Hormuz following intense military conflict involving the US, Israel, and Iran. This maritime corridor is the primary route for the Gulf-origin propane and LNG that powers Morbi’s high-temperature kilns.
- Propane Depletion: Nearly 60% of Morbi’s 800+ units rely on propane. The Morbi Ceramic Manufacturers Association reported that units currently have enough propane to last only until March 5.
- Vessel Gridlock: Major suppliers, including Saudi Aramco and QatarEnergy, have halted or diverted shipments. At least 13 LNG vessels are currently reported “trapped” west of the Strait.
- Fuel Surcharge: Shipping lines have imposed a “conflict surcharge” of up to $2,000 per container, making even the limited available fuel prohibitively expensive.
Supply Disruptions: Gujarat Gas & Propane
The two main fuel sources for the cluster are both under severe strain:
| Fuel Type | Current Status | Impact on Operations |
| Piped Natural Gas (PNG) | Gujarat Gas has reportedly cut industrial supply by 50%–70% to prioritize domestic households. | Units are being told that supply to industrial customers is now “conditional.” |
| Propane / LPG | Shipments from Qatar and Saudi Arabia have ground to a halt. | Suppliers (IOCL, BPCL, HPCL) are prioritizing residential LPG over industrial propane. |
Economic and Human Cost
The Morbi cluster, with an annual turnover exceeding ₹60,000 crore, employs over 4 lakh workers, many of whom are migrant laborers.
- Production Hit: Sandip Kundariya of the association’s floor tiles division stated that kilns must maintain temperatures above 1,200°C; if they cool down due to gas failure, it causes structural damage to the equipment and ruins the product quality.
- Export Panic: Exporters fear large-scale cancellation of international orders as uncertainty grows over delivery timelines.
“The entire Morbi ceramic industry, which relies on gas, comes from the GCC countries. Currently, a complete barricade has been erected there… if the gas supply is not adequate, we anticipate the entire industry will have to be shut down.” — Manoj Arvadiya, President, Morbi Ceramic Manufacturers Association
Sources
- ANI News: “Morbi ceramic industry affected by shortage of natural gas amid conflict” (March 4, 2026)
- The Indian Express: “‘Fuel enough to last just 3 days’: How the Gulf conflict could impact Morbi” (March 3, 2026)
- Argus Media: “LNG supply crunch from Iran war hits India’s downstream” (March 4, 2026)
- Business Standard: “Morbi ceramic units affected by shortage of natural gas amid Gulf crisis” (March 4, 2026)
- The Times of India: “Middle East storm leaves Gujarat business shaken; Morbi hub at risk” (March 3, 2026)
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