Gas Crisis Threatens Shutdown of Morbi’s $7 Billion Ceramic Industry

Morbi, the ceramic manufacturing hub of India located on the banks of the Machchhu River in Gujarat, is facing a severe fuel crisis that threatens to halt operations across hundreds of factories. The town, which produces nearly 90 per cent of India’s ceramic products, depends heavily on propane and natural gas to run its kilns and drying processes. However, escalating conflict in the Middle East and disruptions in shipping through the Strait of Hormuz have severely affected LPG and LNG supplies, leaving factory owners worried about a potential shutdown of the $7 billion industry.

According to industry representatives, nearly 200–250 ceramic factories—about a quarter of Morbi’s total units—have already suspended operations due to shortages of propane. The industry consumes roughly 55 lakh cubic metres of propane daily, delivered by tanker, while around 150 units rely on about 25 lakh cubic metres of natural gas supplied by Gujarat Gas Limited. Vinod Ambani, owner of Livolla Granito, warned that supplies of LNG and propane stopped on 10 March and that factories are currently relying on pipeline gas, which may only last until mid-March if the situation does not improve.

Morbi houses around 1,200 ceramic units producing nearly 60 lakh tonnes annually and providing employment to about nine lakh people. The cluster accounts for nearly 80–90 per cent of India’s ceramic exports and recorded exports worth about ₹15,000 crore in 2024–25. Industry leaders caution that if propane shipments from the Gulf region do not resume soon, as many as 400 more units may shut down in the coming days. Gujarat Chief Minister Bhupendra Patel has expressed concern over the situation, while industry bodies continue to seek urgent government intervention to prevent large-scale disruption in one of India’s most vital manufacturing clusters.

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