War impact cripples Morbi ceramic sector:₹7,000 crore loss reported, factories closed; paper mills also suffer

The escalating war situation between Iran and Israel has crippled Morbi’s world-renowned ceramic industry. For the past one month, with production units shut down, an estimated turnover of 7,000 crore rupees has been stalled. Due to these adverse circumstances, each factory owner is facing a mountain of losses ranging from 50 lakh to 1.50 crore rupees. Not just the ceramic industry, but also the associated paper mill industry has been burdened with an additional financial load of 36 crore rupees. Disruption in Gas Supply and Billions in Turnover Halted
According to Manojbhai Ervadia, President of Morbi Ceramic Association, around 650 ceramic units operating in Morbi have an annual turnover of 60,000 to 70,000 crore rupees. However, due to the shortage in gas supply for the past one month, the production process has had to be stopped, as a result of which an estimated 7,000 crore rupees in turnover has been stalled. Obstruction in Exports: Containers Stuck and Enormous Increase in Costs
The flames of war have also affected export routes. In the last one month, more than 700 containers have returned from Kandla and Mundra ports. In addition, approximately 700 to 800 containers are stranded at foreign ports, with no certainty of their return or arrival at the designated destination. Due to this delay, industrialists are having to bear an additional financial burden of 50,000 to 1.50 lakh rupees per container.
Fuel crisis and irreparable loss
Due to disruption in propane gas supply and insufficient availability of natural gas, ceramic kilns have gone silent. In this situation, each unit has had to bear an average loss of 50 lakh to 1.50 crore rupees. Compensating for such a huge loss and bringing the industry back on track is currently proving to be an uphill battle for the industrialists.
Burden of 36 Crore on Paper Mill Industry
The condition of the paper mill industry, which runs alongside the ceramic industry, has also become dire. The huge increase in the price of waste paper has robbed paper mill owners of their sleep. In just one month, an additional financial burden of 36 crore rupees has fallen on this sector, putting the entire sector in trouble. Major reduction of 45,000 tons in production: Shaileshbhai Patel
Giving details about the capacity of Morbi’s paper mills, Association President Shaileshbhai Patel said that normally, 1.56 lakh tons of paper products are produced here monthly. However, due to the ongoing war for the last 40 to 45 days, a 30 percent reduction in production capacity has been recorded. Currently, as the mills are operating at only 60 to 70 percent capacity, production has decreased by approximately 45,000 tons. Price hike in raw materials: Signs of finished goods becoming expensive
Before the war, paper mill owners used to produce by combining local and imported waste paper. But due to the war, the price of imported waste paper has increased by $25 per ton. Due to this price hike, the paper mill industrialists of Morbi have seen an increased monthly burden of 36 crore rupees. In the coming time, the impact of this additional cost will also fall on the prices of finished goods, due to which there is a high possibility of paper products becoming expensive.