MORBI, India — The ceramic tile hub of Morbi in Gujarat, known for contributing more than 80% of India’s tile production, has witnessed a sharp slowdown in activity amid disruptions caused by the ongoing Iran conflict.
A shortage of fuel, essential for running high-temperature kilns, has severely impacted manufacturing operations. Much of the natural gas used by the industry is transported through the Strait of Hormuz, making supplies vulnerable to geopolitical tensions. With limited availability and soaring prices, several factories have been unable to sustain operations.
Morbi’s growth as a leading export center has largely depended on its strategic location near Arabian Sea ports and easy access to raw materials. However, the current crisis has disrupted this advantage, forcing many units to temporarily shut down.
The slowdown has also affected the workforce. A significant number of workers have either sought alternative employment or returned to their home states, leaving only a small workforce engaged in maintenance activities at closed units.
Industry representatives say only a handful of large manufacturers remain operational, relying on costly propane gas to keep production going. Smaller units, unable to bear the increased expenses, have halted operations entirely.
The recent ceasefire has provided some relief, raising hopes of stabilizing fuel supplies. With assurances from Gujarat Gas, a few factories have started resuming operations. However, uncertainty persists over whether fuel prices will return to earlier levels, which is crucial for the industry’s full recovery.