India's vital ceramics industry, centered in Gujarat's Morbi district, has largely ground to a halt following a severe fuel crisis triggered by escalating conflict in the Middle East. More than 450 companies have shut down, impacting 200,000 workers, according to the Morbi Ceramic Manufacturers Association. This disruption underscores how distant geopolitical tensions directly threaten livelihoods thousands of kilometers away.
The reverberations of a distant conflict reached Pradeep Kumar directly. For seven years, his routine at a Morbi ceramics factory was predictable: 9 AM start, loading clay, quartz, and sand into the kiln, enduring the heat and dust. His work involved feeding materials into machines and moving semi-processed pieces towards firing, a demanding job without protective gear.
That changed on March 15. He lost his job. His company, like hundreds of others in Morbi, ceased operations due to a critical shortage of propane and natural gas.
These fuels are indispensable for firing kilns at the high temperatures required to produce tiles, toilets, and wash basins. Morbi, a manufacturing hub, accounts for roughly 80 percent of India's ceramics production. It employs over 400,000 people.
Half of these workers are migrants, like Kumar, from poorer states such as Uttar Pradesh and Bihar. Five days after his layoff, the 29-year-old gathered his wife and three children, returning to their home in Uttar Pradesh's Hardoi district. "I am here until every other migrant worker who came back home with us goes back," Kumar told Al Jazeera. The memory of the 2020 and 2021 COVID-19 lockdown, which saw millions of starving families walking for days to reach home, remains fresh. "We don’t want to suffer like dogs, like we did during the COVID-19 pandemic," he stated, a clear and stark sentiment from a man who has lived through such hardship before.
The immediate cause of Morbi’s crisis is a standoff in the Strait of Hormuz. This narrow passage is a critical chokepoint for India’s gas imports. Renewed hostilities between the United States and Israel against Iran have escalated, disrupting global fuel supplies.
On Sunday, the US captured an Iranian cargo vessel. This seizure followed a fragile ceasefire, agreed after a month of fighting, which was set to expire on Wednesday. Tehran refused to commit to new peace talks after its ship was taken.
Iran responded by shutting down the Strait of Hormuz for traffic. Oil prices instantly rose. Siddharth Bopaliya, a 27-year-old third-generation manufacturer and trader in Morbi, explained the industry’s reliance. "All manufacturing units in Morbi rely on propane and natural gas to fire kilns at high temperatures," he told Al Jazeera.
He noted that about 60 percent of manufacturers use propane because it is typically cheaper, while natural gas is supplied by the state to those with established connections. The dual reliance means disruptions to either source cripple operations. This is not a supply chain hiccup.
This is a systemic shock. Manoj Arvadiya, president of the Morbi Ceramic Manufacturers Association, initially hoped for a quick resolution. They had shut down units until April 15, anticipating the Middle East crisis would subside. "But even today, only around 100 units have opened, and most have still not begun the manufacturing process," Arvadiya told Al Jazeera recently.
He estimates another 15 days of closures are likely. The math does not add up for many smaller manufacturers. The closure has already displaced 200,000 workers, with more than a quarter of them returning to their home states.
India's ceramic industry is valued at $6 billion annually. About 25 percent of Morbi's ceramics, worth $1.5 billion, are exported to the Middle East, Africa, and Europe. These exports are now delayed, or in some cases, completely halted.
The financial drain is substantial. Factories dependent on propane largely remain shut. While natural gas is more available, many units have not switched.
New natural gas connections are priced at 93 rupees a kilo, while existing users pay about 70 rupees. This price difference creates a barrier for immediate conversion. Khushiram Sapariya, a washbasin manufacturer who uses propane, plans to wait another month before deciding on reopening.
He faces a tough choice. "Because then I have to call hundreds of staff who have gone to their homes, and I want to be sure before taking their responsibility," he said. The cost of recalling a workforce, only to face further uncertainty, is a risk many cannot afford. Follow the leverage, not the rhetoric.
The leverage here is energy supply. Beyond the immediate economic fallout, the crisis exposes deeper, long-standing issues within the industry. Ankur Singh, 27, was among the workers who left Morbi last month.
He returned to his hometown near Patna in Bihar not just jobless, but ill. "The shutdown of my company did not send me back alone, but with a Morbi disease – silicosis," Singh told Al Jazeera. He had often experienced fever and cough but ignored it. A check-up in Bihar confirmed the diagnosis: silicosis, an incurable lung disease caused by inhaling fine silica dust.
This is an occupational hazard, often deadly. Chirag Chavda, a Gujarat-based labor rights activist, confirms the widespread nature of the disease in Morbi. "Workers are routinely exposed to fine silica dust generated during ceramic production," Chavda stated. Poor ventilation and prolonged exposure across factory spaces mean even those not directly involved in molding or kiln work inhale the particles.
Many ceramic companies, Chavda asserts, do not follow government safety regulations. Harish Zala, 40, a worker who spent two decades in Morbi's ceramic companies, developed silicosis two years ago. He received no help from his employer.
His father was allegedly abused and threatened when he sought assistance. "Every year, at least one labourer dies of silicosis in each company, while several get detected for silicosis," Zala told Al Jazeera. Some, like him, survive but must quit their jobs immediately. Here is what they are not telling you: the long-term human cost extends far beyond the current fuel crisis.
Many companies avoid providing written proof of employment, such as appointment letters or salary slips. This practice, Zala explained, prevents workers from demanding labor rights or legal entitlements, as they lack concrete evidence of employment. Chavda added that this also denies workers social security under various Indian laws regarding salaries or pension funds, as proof of employment would establish eligibility.
This systemic lack of accountability leaves employers with minimal legal obligations. The workers bear the brunt. Not all migrant workers have left Morbi.
Sushma Devi, 56, from West Bengal, remains. Her son's tile company promised continued shelter and food while awaiting manufacturing to resume. "I am here with a few more people because we did not want to spend money on travelling," Devi said, walking with a bundle of dry twigs and discarded plywood for cooking. "Here, at least our ration is sorted." She and her husband, Debendar, and their son Ankit share a one-room set provided by the company, with access to a common toilet for ten families. They collect fuel daily for their two meals. "I hope the kilns and manufacturing resume soon, but I also hope they don’t stop giving us rice and potatoes even if the kilns don’t start running anytime soon." Her immediate concern is survival.
Meanwhile, Pradeep Kumar is quickly depleting his meager savings. He borrowed 20,000 rupees ($214) from a relative for house repairs and fears falling into a debt trap while seeking daily wage work in Hardoi. Why It Matters This crisis in Morbi illustrates the brutal ripple effects of geopolitical instability.
A distant conflict over oil routes directly translates into job losses, economic hardship, and a heightened public health crisis for hundreds of thousands of India's most vulnerable workers. The disruptions expose not only the fragility of global supply chains but also the deep-seated issues of labor rights and occupational safety within a critical industrial sector. The economic impact on India's $6 billion ceramics industry is substantial, potentially affecting global construction and home improvement markets that rely on Indian exports.
Key Takeaways - Over 450 ceramic factories in India's Morbi district have shut down due to a fuel crisis stemming from Middle East conflict. - The closures have displaced 200,000 workers, many of whom are migrant laborers returning to their home states. - The Strait of Hormuz standoff, following US-Iran hostilities, has disrupted critical propane and natural gas supplies. - The crisis exacerbates long-standing issues of occupational diseases like silicosis and lack of worker rights in the industry. What Comes Next The fragile ceasefire between the US and Iran has already expired. Renewed hostilities could further tighten fuel supplies and prolong the crisis for Morbi.
Industry leaders like Manoj Arvadiya estimate at least another 15 days of closures for most units. Manufacturers like Khushiram Sapariya must weigh the cost of switching to natural gas against the uncertainty of market stability and worker recall. The plight of migrant workers like Pradeep Kumar and Sushma Devi will worsen without intervention.
Observers will watch closely for any diplomatic breakthroughs concerning the Strait of Hormuz, as well as for government support aimed at stabilizing India's key industrial sectors and protecting its labor force from the fallout of distant wars.
Key Takeaways
— - Over 450 ceramic factories in India's Morbi district have shut down due to a fuel crisis stemming from Middle East conflict.
— - The closures have displaced 200,000 workers, many of whom are migrant laborers returning to their home states.
— - The Strait of Hormuz standoff, following US-Iran hostilities, has disrupted critical propane and natural gas supplies.
— - The crisis exacerbates long-standing issues of occupational diseases like silicosis and lack of worker rights in the industry.
Source: Al Jazeera