The closure of the Strait of Hormuz has severely disrupted gas supplies to Morbi, bringing much of its booming ceramic sector to a standstill. With many manufacturing units already forced to shut down, the Morbi Ceramic Manufacturers Association is taking decisive action by suspending operations across all remaining units for approximately three weeks.
Morbi is one of the world’s largest ceramic clusters, known for its wide range of products including tiles and sanitary ware. Currently, out of 627 ceramic manufacturing units in the region, about 430 tile-making facilities have ceased operations due to gas shortages. Only around 150 units producing sanitary ware remain operational since their gas needs are lower.
Manoj Aravadiya, president of the association, explained that this decision came during a meeting on Tuesday. The suspension will last for 20 to 25 days, with plans to reassess the situation around April 10-15. There’s hope that demand from Gulf countries might increase if regional tensions ease.
This shutdown has triggered a significant movement of laborers back to their hometowns. Reports from Wankaner railway station indicate heavy crowds as workers leave due to job losses. The ceramic industry in Morbi employs over half a million people and generates annual revenues exceeding ₹60,000 crore, with exports contributing ₹20,000 crore.
A closure lasting even just a few weeks could lead to substantial revenue losses and impact foreign exchange earnings significantly. This incident highlights just how vulnerable Morbi’s ceramic cluster is when faced with disruptions in energy supply.