Morbi's Ceramic Exports Plummet Amid Gas Price Volatility, Freight Rate Hikes

The ceramic industry in Morbi, India's ceramic hub, is facing significant challenges due to disruptions in gas supplies, rising freight costs, and a shortage of containers. According to official figures, exports declined by around 70% in the first quarter of the 2026-27 financial year compared to the corresponding period previous year.

The uncertainty began when the US-Israel conflict with Iran disrupted natural gas and propane gas supplies, affecting Morbi's ceramic industry, which relies on gas for nearly 40% of its production costs. Propane was cheaper than piped natural gas and had a higher calorific value, but prices surged to as high as Rs 90 per SCM after the crisis intensified.

When production resumed, the domestic market absorbed some excess stock, but exports suffered due to increased prices, freight rates that rose by 200-300%, and anti-dumping duties imposed by several countries. Industry representatives attributed the decline in exports to these factors rather than gas prices alone.