Escalating conflicts involving Iran, Israel, and the United States are hitting Morbi hard. Known as the world’s second-largest ceramic hub, this city is grappling with significant disruptions in its manufacturing sectors.
Industrial leaders report that restrictions along the Strait of Hormuz have severely impacted gas supplies to local ceramic factories. Manoj Airwadia, president of the Ceramic Association, revealed that nearly 100 ceramic units have shut down. This closure has led to around 5,000 workers losing their jobs.
“At present, we are receiving only about 50% of the required gas supply from Gujarat Gas,” Airwadia said. He warned that without an improvement in conditions over the next ten days, up to 1,100 remaining ceramic factories might also close their doors.
The situation isn’t limited to ceramics. Morbi’s paper mill industry is also feeling the strain. Shailesh Patel, president of the Paper Mill Association, noted disruptions in raw material imports due to closed shipping routes. As a result, export costs have soared; freight charges increased by about $2,000 while coal prices spiked by ₹1,000 per tonne.
Morbi hosts 52 paper mills with a combined annual turnover nearing ₹5,000 crore—figures that now hang in the balance. Industrialists report a significant slowdown in exports to Gulf countries and parts of Europe. New orders have been halted and various consignments suspended.
Currently adopting a ‘wait and watch’ strategy, industry representatives warn that if tensions continue for just another week, both sectors could face complete shutdowns—putting livelihoods at serious risk for nearly one million people tied to these industries.