Morbi’s ceramic industry feels Iran conflict impact; production may be suspended due to fuel shortage

Wait 5 sec.

The Morbi ceramics industry, the largest in India, uses Propane as well as Natural Gas as fuel for kilns in their manufacturing units. (Express Archive)Gujarat’s ceramic industry hub in Morbi could be staring at a fuel crisis on account of the conflict in the Middle East. Industry bodies that The Indian Express spoke to on Monday said they had enough propane to run their units only for three days.The refrain by presidents of three of the four divisions of the Morbi Ceramic Manufacturers Association was, “The ceramic industry has enough propane only for 3 days, and if the conflict goes on any longer, we will have to suspend production in our units.” They said they had been informed by their fuel suppliers that propane is unlikely to reach gas distributors in Gujarat on time due to the unwillingness of tankers to sail through the Strait of Hormuz due to the conflict in West Asia.Fuel shipments from the Gulf countries have stopped following the outbreak of war between the US and Israel on one side and Iran on the other, leading to warnings being issued for the closure of the Strait of Hormuz.The Morbi ceramics industry, the largest in India, uses Propane as well as Natural Gas as fuel for kilns in their manufacturing units. The ceramic industry consumes approximately 25 lakh cubic metres of natural gas per day and 55 lakh cubic metres of propane usage per day, according to industry leaders. There are about 150-200 units that use natural gas in the manufacturing process while there are in excess of 500 units that use propane to fire their kilns to produce their ceramic products. Notably, while Natural Gas is delivered to ceramic units by the state-owned Gujarat Gas Limited, propane-LPG is delivered in tankers through road transport by Indian Oil Corporation Ltd. (IOCL), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL) through local traders.Industry ‘shutdown’ likelySandip Kundariya of the Morbi Ceramic Manufacturers Association’s floor tiles division said, “If we don’t get propane from Qatar in time, we cannot manufacture anything. Units that use propane for their kilns have been told in no uncertain terms that it is available till March 5. A couple of tankers are on the way but apart from that, it is unlikely any more shipments will get through till the conflict is resolved. The government has told two major propane companies that first priority must be given to household LPG use. An official notification has not yet arrived.”Haresh Bopaliya of the Morbi Ceramic Manufacturers Association’s wall tiles division told The Indian Express, “Our dealers have told us that they have been informed by the major companies that they have about three days worth of propane supply and supply will continue only if shipments arrive. At the moment, it looks like a short term shutdown of the majority of the industry is imminent.’’ The Uncertainty of Natural GasGujarat Gas, a Public Sector Unit (PSU) that supplies natural gas to the Morbi industry, may also face shortages as there are several ceramic units in Morbi that have a pre-existing PNG pipeline and propane tanks in their factories. With propane availability now under a cloud depending on the length of the conflict, units wishing to switch back to LNG may also be stuck between a rock and a hard place.On one hand, if there is a delay in propane delivery due to any reason, it can affect production because the temperature of the kilns cannot go below 12,000 degrees Celsius which would impact not just production timelines, but also the quality of the products.On the other hand, even if an attempt is made to go back to natural gas, it may not be possible at the moment.A Gujarat Gas official, speaking on the condition of anonymity to The Indian Express, said, “The demand for Natural Gas is likely to rise due to propane delays but vessels carrying natural gas have also been impacted due to the war. So we have confirmed to regular customers, using a total of 25-30 lakh cubic metres per day, that they will continue to receive PNG, but we have told others who are regularly using propane and have now approached us for PNG, that availability to them will be conditional and based on a review of the evolving situation.”Managing Director of Gujarat Gas, Avantika Aulakh, was unavailable for comment.Industry facing fuel delays for a monthStory continues below this adT D Patel of Pavansut Enterprise, one of the three fuel traders who supply Propane-LPG to the ceramic industry in Morbi, told The Indian Express, “Currently, 60% of the Morbi Ceramics market runs on propane-LPG fuel. There has already been a short supply from IOCL, BPCL and HPCL since the past month due to a lack of stocks. IOCL has stocks but they have to supply it to domestic households first and then fulfill industry orders to Morbi. So tankers that used to be loaded within 6 hours of orders, are now leaving the plant after 30 hours which is impacting production in the factories.”Patel said that the already existing short supply had caused some units to cease production.Since before tensions in the Gulf escalated, Industry leaders said that several ceramic units had decided to reduce production by sharing one Propane tanker, but are not sure that this route will be sustainable if there is no resolution to this war by the end of the week.Brendan Dabhi works with The Indian Express, focusing his comprehensive reporting primarily on Gujarat. He covers the region's most critical social, legal, and administrative sectors, notably specializing at the intersection of health, social justice, and disasters. Expertise Health and Public Policy: He has deep expertise in healthcare issues, including rare diseases, Antimicrobial Resistance (AMR), the complex logistics of organ transplants, and public health challenges like drug-resistant TB and heat health surveillance. His on-ground reporting during the COVID-19 pandemic and Mucormycosis was critical in exposing healthcare challenges faced by marginalized communities in Gujarat. Social Justice and Legal Administration: He reports on the functioning of the legal and police system, including the impact of judicial philosophy, forensics and crucial administrative reforms (. He covers major surveillance and crackdown exercises by the Gujarat police and security on the international border. Disaster and Crisis Management: His work closely tracks how government and civic bodies respond to large-scale crises, providing essential coverage on the human and administrative fallout of disasters including cyclones, floods, conflict, major fires and reported extensively on the AI 171 crash in Ahmedabad. Civic Infrastructure and Governance: Provides timely reports on critical civic failures,  including large scale infrastructure projects by the railways and civic bodies, as well as  the enforcement of municipal regulations and their impact on residents and heritage. ... Read MoreStay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:IranUS-Israel