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India's ceramic hub grinds to a halt as Iran war chokes gas supply

INDIA - Most factories in Morbi, India's ceramics hub in the western state of Gujarat, have shut down for nearly a month due to gas shortages triggered by the Iran war, according to the local manufacturers'...

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association. Morbi produces about 80% of India's ceramics - mainly tiles and sanitaryware - and exports to the Middle East, Africa and Europe. Manufacturers say they halted operations on Tuesday after supplies of propane and natural gas - key fuels for ceramics production - were squeezed. India's ceramics industry is estimated to be worth about 750bn rupees ($8.1bn; £6bn), with Morbi at its core. The shutdown has hit around 400,000 workers linked to the sector.

The US and Israel launched strikes on Iran on 28 February, triggering retaliation and disrupting shipping through the Strait of Hormuz - a key route for much of India's gas imports. Since Monday, three Indian-flagged ships - two carrying liquefied petroleum gas and one crude oil - have reached Gujarat via the conflict-hit strait, but around 21 vessels remain stalled in the region. Foreign Minister S Jaishankar has said he hopes talks with Iran will ease the disruption. As an immediate measure, the government has directed that households and key sectors like healthcare and agriculture be prioritised for gas distribution. Ceramics manufacturing is energy-intensive, relying on propane and natural gas to fire kilns at high temperatures. "Roughly four out of 10 manufacturers use propane. The others use natural gas," Amit Prajapati, a manufacturer told the BBC.

The manufacturers say they purchase propane from private companies, while piped natural gas is received from a state-run distributor. "About 550 factories have halted production, while a few using piped natural gas remain operational, depending on availability," Mukesh Kundariya, adviser to the Morbi ceramics manufacturers' association, told the BBC. Overall, around 80% of manufacturers in Morbi - especially larger units - have shut operations. The shutdown is set to be in place until 15 April, says Kundariya. (BBC)

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