Surat: The ongoing conflict in West Asia has begun to severely impact Gujarat’s industrial economy, with fuel shortages and supply chain disruptions forcing shutdowns in Morbi’s ceramic industry, while export-oriented sectors in Surat are also facing delays and rising logistics costs.

Morbi, known as India’s ceramic capital and the world’s second-largest tile manufacturing cluster, is witnessing a deepening crisis after disruption in propane supplies following restrictions on fuel movement through the Strait of Hormuz. Industry sources said that around 170 ceramic factories have shut down so far due to a shortage of propane gas, which is a key fuel used in tile manufacturing.

Ceramic units in Morbi operate mainly on propane and natural gas. While natural gas is supplied through pipelines, propane is transported by tankers from Gulf countries such as Qatar and Saudi Arabia. The ongoing conflict has disturbed international fuel logistics, resulting in irregular supply and forcing many factories to suspend production.

Last week, around 100 units were closed. Today, industry representatives said that nearly 70 additional units have stopped operations in the last few days, adding to earlier closures. Associations had earlier warned that the situation could worsen if supplies are not restored soon, with estimates suggesting that hundreds of units may be forced to shut if the shortage continues.

Manufacturers said ceramic production requires continuous kiln operations at temperatures of nearly 1,200 degrees Celsius, making an uninterrupted fuel supply essential. With gas availability reduced and stocks running low, several units are unable to continue production even for a few days.

Morbi’s ceramic industry accounts for nearly 80–90 per cent of India’s tile production and exports and has an estimated annual turnover of around ₹60,000 crore. The sector provides direct and indirect employment to several lakh people, including factory workers, transporters, packaging units, and traders. Industry sources said that each factory employs hundreds of workers, and prolonged shutdowns could affect livelihoods on a large scale.

The impact of the fuel crisis is now spreading to allied industries in the Morbi region. Paper mills that supply packaging material to ceramic manufacturers are facing difficulties due to a slowdown in imports of waste paper and rising freight costs. Industry representatives said that international shipping disruptions have pushed container prices sharply higher, increasing the cost of raw materials.

The polypack manufacturing sector in Morbi is also under pressure due to a shortage of plastic granules, a major raw material used in packaging. Manufacturers said prices have increased significantly after the conflict disrupted imports, forcing some units to purchase material at higher rates to keep production running.

Rising freight charges have further worsened the situation, with transport costs increasing sharply for both raw materials and finished goods. Industrial sources said container charges have multiplied in recent days, adding to production costs at a time when factories are already struggling with fuel shortages.

The effect of the West Asia conflict is not limited to Morbi. In Surat, Gujarat’s major export hub, traders in the textile, diamond, and jewellery sectors are also facing disruptions due to delays in cargo movement and uncertainty in global trade routes. Exporters said several consignments worth crores of rupees are stuck at airports and ports as flight and shipping schedules have been affected.

Industry leaders warned that prolonged disruption could lead to payment delays, cancelled orders, and loss of export business, particularly in markets in West Asia and the United States. Traders said the situation is worrying because a large share of India’s jewellery and textile exports depends on overseas demand.

Industrial associations said that if fuel supply and international shipping routes do not stabilise soon, the crisis could spread further across Gujarat’s manufacturing sector. With shutdowns in Morbi and export delays in Surat, the ongoing conflict is emerging as a major test for the state’s export-driven industrial economy. DeshGujarat