India’s largest ceramic manufacturing cluster in Morbi, Gujarat, is facing the risk of widespread shutdowns as fuel supplies from West Asia remain disrupted due to the ongoing conflict involving Iran, the United States and Israel.
Located about 60 kilometres from Rajkot on the banks of the Machchhu River, Morbi produces nearly 90 percent of India’s ceramic goods and accounts for a large share of the country’s exports of tiles and sanitaryware. However, factory owners say the industry is now struggling with a severe shortage of propane and natural gas — key fuels used to fire kilns and dry ceramic products.
The supply disruption follows the escalating conflict in West Asia and the blockage of the strategic Strait of Hormuz, through which a large portion of global energy shipments pass.
Industry representatives say the situation has already forced a significant number of units to halt production. Of the roughly 1,200 ceramic factories operating in Morbi district, about 200–250 units — nearly a quarter of the total — have already suspended operations due to fuel shortages.
The Morbi ceramic industry consumes around 55 lakh cubic metres of propane every day, which is typically transported to factories by road tankers from oil companies and traders. In addition, nearly 25 lakh cubic metres of natural gas are supplied daily through pipelines by Gujarat Gas Limited to about 150 industrial units.
With propane deliveries becoming irregular in recent days, many manufacturers fear the crisis could deepen if supplies are not restored quickly. Industry leaders warn that up to 300–400 factories could be forced to shut down if the shortage persists.
Morbi is widely regarded as the backbone of India’s ceramic industry. The sector produces ceramics worth about ₹70,000 crore annually, with roughly ₹50,000 crore sold in the domestic market and the remaining ₹20,000 crore exported.
According to estimates, Morbi accounts for 80–90 percent of India’s ceramic exports and nearly 90 percent of Gujarat’s production. The cluster is also the world’s second-largest ceramic manufacturing hub.
The industry directly and indirectly supports nearly 9 lakh jobs. In 2024–25 alone, Morbi exported ceramic products worth around ₹15,000 crore to markets including the US, France, Germany, Oman and Sri Lanka.
Manufacturers say the sector last faced a crisis of this magnitude during the COVID-19 pandemic. Now, with India heavily dependent on LNG imports from countries such as Qatar and LPG supplies from Gulf producers, continued disruptions could push the industry into a prolonged shutdown.
The Gujarat government has expressed concern over the situation, and industry representatives say discussions are under way to find alternative supply arrangements. However, manufacturers warn that if gas supplies are not restored soon, the crisis could trigger large-scale factory closures and job losses across the region.