Morbi: The world-renowned ceramic industry in Morbi is facing a potential shutdown within the next few days as the escalating military conflict in West Asia cripples essential fuel supplies. Industry representatives warned on Wednesday that the disruption of gas and propane shipments, primarily sourced from the Gulf region, could bring production to a standstill across the hub.

Supply Chain Paralysis

The crisis is a direct result of the ongoing war involving Israel, the United States, and Iran, which has led to the closure of the Strait of Hormuz, a critical maritime passage for energy vessels. Following U.S. and Israeli airstrikes on Iranian military targets on February 28, Iran has reportedly barricaded the area, preventing vessels carrying petroleum products and gas from reaching their destinations.

Manoj Arvadiya, President of the Morbi Ceramic Manufacturers Association, noted that most of the industry’s gas and petroleum products are sourced from Gulf Cooperation Council (GCC) countries, all of which are currently affected by the regional instability.

Running on Empty

The ceramic industry relies heavily on propane and natural gas for firing kilns and drying processes. Current fuel reserves are at critical levels:

Propane: Most companies have stock remaining for only two to three days. Supply was already strained due to a prior accident at a Saudi Arabian port on February 23.
Natural Gas: Supplies from Gujarat Gas Ltd are estimated to last only about one week to ten days.

“If the war situation persists, then in the coming week or 10 days, we will face a situation where the entire ceramic industry will have to suspend operations,” Arvadiya told the media.

Human and Economic Impact

A total shutdown would jeopardize the livelihoods of two to four lakh labourers who are directly and indirectly dependent on Morbi’s 600 ceramic units. Haresh Bopaliya, President of the Wall Tiles Division, echoed these concerns, noting that the disrupted supply chain has made timely fuel availability impossible.

Former association president Mukesh Kundariya cautioned that the length of the shutdown would be dictated by the duration of the conflict. He estimated that a two-week war could lead to a 45-day shutdown, while a month-long conflict could prevent the industry from restarting for up to two months. Additionally, manufacturers fear that fuel prices will rise sharply once supplies resume, further threatening the survival of many units.

National Energy Security

Despite the local crisis in Morbi, government sources indicate that India remains in a relatively comfortable position regarding national energy security. The country currently maintains eight weeks of crude oil and petroleum reserves, and only about 40% of India’s crude imports transit through the Strait of Hormuz. However, for the propane-dependent factories of Morbi, the regional blockade presents an immediate and existential threat. DeshGujarat