Gas shortage forces shutdown of 430 ceramic units for three weeks in Gujarat’s Morbi

As many as 430 ceramic manufacturing units in Gujarat’s Morbi have decided to suspend operations for at least three weeks following a disruption in gas supply triggered by the ongoing conflict in West Asia, PTI reported on Tuesday, citing industry representatives.

Morbi, regarded as the country’s ceramic hub and the world’s second-largest centre for ceramic tile production, has already seen nearly 450 of its 670 factories cease operations due to the shortage.

More units are likely to shut in the coming days, according to the report.

The ceramic industry is heavily dependent on propane and natural gas, particularly for kiln firing and drying processes, making it highly vulnerable to supply disruptions.

“A special meeting of ceramic units operating at Morbi in Gujarat was convened on Tuesday, where the owners of around 430 units engaged in consultations regarding the gas crisis and ancillary issues, and collectively decided to shut down their factories,” Morbi Ceramic Manufacturing Association president Manoj Arvadiya said.

He said units running on propane were the first to halt operations after supplies were exhausted, followed by those dependent on natural gas.

“Now, around 430 such units have collectively decided not to operate till April 10-15 and use the period for maintenance of their machines. They will together begin operations subject to the availability of the new supply of gas,” Arvadiya said.

The disruption has been linked to the escalating conflict involving Iran, the US and Israel, which has led to the closure of the Strait of Hormuz, a critical chokepoint for oil and gas shipments.

The government has moved to prioritise gas allocation for essential sectors in response to the supply crunch.

Last week, it issued the Natural Gas (Supply Regulation) Order, 2026, to regulate production, allocation and distribution of natural gas, including LNG and regasified LNG.

Under the new framework, domestic piped natural gas (PNG), compressed natural gas (CNG) for transport, LPG production and critical pipeline operations have been accorded top priority.

Fertiliser plants fall under the second priority category and will receive 70% of their average consumption, subject to availability, while industrial consumers connected to the national gas grid are to be supplied 80% of their average requirement.

“The gas marketing entities shall ensure that gas supply to tea industries, manufacturing and other industrial consumers…is maintained at eighty per cent of their past six month average gas consumption,” the order said.

The government has also directed full or partial curtailment of gas supplies to sectors such as petrochemicals and power generation.