Iran-Israel War Impact: Morbi Ceramic Units Face Shutdown Over Gas Crisis

Morbi | Gujarat — The escalating conflict between Iran and Israel has sent shockwaves far beyond West Asia, and its direct impact is now threatening to paralyse Gujarat’s ceramic capital, Morbi. Following a missile strike on Saudi Arabia’s prestigious Saudi Aramco refinery, propane gas supplies to India have been severely disrupted, pushing nearly 600 ceramic units in Morbi to the brink of shutdown within the next 48 to 72 hours.

Morbi’s ceramic industry, considered one of the largest tile manufacturing hubs in the world, depends heavily on propane and natural gas to fuel its kilns. Around 70% of the units operate on propane gas, while the remaining 30% use natural gas. With supply chains snapping, factory owners fear an unprecedented economic crisis.

“Propane gas reaches Morbi via vessels from Saudi Arabia to Kandla port and then through tankers. With refinery operations hit and shipping disrupted, factories have only enough stock left for two to three days,” said Manoj Erwadia, President of the Morbi Ceramic Association. “If supply is not restored within 48 hours, production in hundreds of units will come to a complete standstill.”

The situation is further aggravated by stalled shipping routes due to war tensions. Nearly 25% of Morbi’s ceramic exports are destined for Gulf countries. “Not only fuel supply but exports will also halt. This double disruption could severely dent Gujarat’s economy,” Erwadia added.

The crisis threatens the livelihood of nearly three lakh workers employed directly and indirectly in the sector. Vikas Singh, a worker from Uttar Pradesh who has worked in Morbi for 15 years, expressed anxiety. “Lakhs of families depend on these factories. If the units shut down for long, the question of our survival will arise,” he said.

Jaideep Patel, another worker with two decades in the industry, warned of a repeat of the COVID-era distress. “If factories close completely, it could create a situation like the Corona period. Workers may be forced to leave the city with their families.”

Industrialists estimate heavy financial losses if production halts. Rajan Patel, a ceramic manufacturer, said each large factory could suffer monthly losses between ₹50 lakh and ₹1 crore. “Most goods are sold on credit. Recovering crores of rupees during a shutdown will be extremely difficult,” he noted, highlighting the burden of fixed operational costs even during closure.

Amid mounting anxiety, representatives of the Morbi Ceramic Manufacturing Association met officials of Gujarat State Petroleum Corporation (GSPC) seeking clarity on gas stocks. While officials reportedly assured that sufficient reserves exist for now, no formal statement has been issued.

Former association president Mukesh Kundariya cautioned that propane ships from Gulf nations have stopped arriving, and existing supplies may be diverted to other commercial priorities. Gujarat Gas reportedly consumes 17 to 20 lakh cubic meters daily, with stock estimated to last only around 10 days.

As kilns risk going cold and exports stall, Morbi stands at a critical crossroads. Without swift international de-escalation or alternative fuel arrangements, the Iran-Israel war impact on Morbi ceramic industry could trigger one of the most severe industrial crises Gujarat has faced in recent years.