The red-hot kilns in India’s $6.5 billion ceramics hub, which employ hundreds of thousands of people, have gone cold because of an energy shortage caused by the Middle East war. At a large factory in Morbi, Gujarat, a 200-metre-long propane-powered kiln that usually runs non-stop is now silent. It is one of many plants that make tiles for homes around the world but have been forced to stop work, according to a report by AFP.
A thick layer of dust now covers the big grinding and pressing machines. Only a small group of workers is left, moving the last batch produced three weeks ago from the long assembly lines into trucks.
“We are suffering a lot,” Kishor Dulera, a tile factory owner who shut this unit and two others in early March, told the news agency.
Heavy dependence on imported gas
India, the world’s fourth-largest economy, depends on imports for 60 per cent of its liquefied petroleum gas (LPG) needs.
Most of this gas comes through the Strait of Hormuz. But the route has been effectively blocked by Iran after US-Israeli strikes on the country last month led to a wider regional conflict, disrupting global energy supplies.
The government in New Delhi has given priority to household supply so people can continue cooking. This has reduced the amount of gas available for industries.
As a result, factories in sectors like stainless steel and plastic have cut down production.
“If the main raw material is disturbed, the whole industry is disturbed,” Dulera told AFP.
Morbi: The heart of India’s ceramics industry
Morbi’s ceramics hub produces about 90 per cent of India’s total output and is one of the largest in the world, exporting tiles to countries such as the United States and Thailand. The industry provides direct and indirect jobs to nearly a million people, according to government data.
More than 400 factories have shut down because the gas supply chain has been “broken”, said Manoj Arvadiya, head of the local industry association.
Mounting losses for manufacturers
Keeping the kilns running requires continuous operation, and sudden shutdowns can damage machines. “It is a continuous process. You can’t run it for two days and then switch it off for one day. It doesn’t work like that,” Arvadiya told AFP.
The government has increased domestic LPG production, arranged passage for some tankers, and bought new supplies from countries like Australia and Russia.
These steps are expected to improve supply over time.
The tile industry grew in Gujarat because of easy access to clay and good transport links, but it depends on imported fuel to run its kilns. Most factories in Morbi have been shut for nearly a month due to gas shortages linked to the Iran conflict, according to the local manufacturers’ association.
India’s ceramics industry is worth around Rs 750 billion ($8.1 billion), with Morbi at its centre. The shutdown has affected around 400,000 workers connected to the sector, according to a BBC report.
The US and Israel carried out strikes on Iran on 28 February, which led to retaliation and disrupted shipping through the Strait of Hormuz.
Two Indian-flagged LPG tankers have safely arrived in India after Iran allowed them to pass through the Strait of Hormuz. Meanwhile, two more vessels – BW Tyr and BW Elm – began their journey along the same route on Saturday, according to officials cited by Hindustan Times.
Earlier this month, three Indian-flagged ships – two carrying LPG and one crude oil – reached Gujarat through the conflict-hit route. Foreign Minister S. Jaishankar has said he hopes talks with Iran will help ease the situation.
As an immediate step, the government has ordered that households and essential sectors like healthcare and agriculture be given priority in gas supply.
Ceramics manufacturing uses a lot of energy, as kilns need propane and natural gas to operate at very high temperatures.