Iran Conflict Hits Home: Nearly 100 Morbi Ceramic Units Shut As Propane Supply Dries Up

The ongoing military conflict involving the United States, Israel and Iran has begun affecting Indian industry, with close to 100 ceramic manufacturing units in Gujarat's Morbi district suspending operations following a sharp disruption in propane fuel supplies, the Hindustan Times reported.

Industry representatives have cautioned that the situation could deteriorate significantly in the days ahead.

Manoj Arvadiya, president of the Morbi Ceramic Manufacturers Association, said the crisis stemmed directly from the geopolitical turmoil disrupting gas shipments through the Strait of Hormuz.

"Due to the prevailing war-like situation, propane gas has not been available for the past two days, and around 100 units dependent on the fuel have already shut down," Arvadiya told reporters.

He further warned that a much larger section of the industry could follow suit.

"If there is no proper guideline on gas availability and the supply does not normalise, we foresee that around 400 more propane-powered units may shut down by next week," he said.

Units supplied by Gujarat Gas continue to function for now, though Arvadiya cautioned that even their operations face risk.

"Gujarat Gas customers are still operating, as the resource is available to them at present. However, if we calculate based on the current availability, which is roughly around 50 per cent, even those units may face closure by March 20," he said.

Export commitments have taken a hit as well. "The export orders that we had already produced are ready, but they cannot be dispatched. Many new export orders have also been put on hold," Arvadiya said.

He noted that delayed shipments would disrupt payment cycles across the industry.

On the labour front, factories are retaining workers for now. The industry body has reached out to the state government, and Gujarat Chief Minister Bhupendra Patel has reportedly taken note of the situation.

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