India’s largest ceramic tiles manufacturing unit, Morbi, Gujarat, is going on a month-long break. For the first time in the history of the Morbi ceramic industry, production units will remain shut for a month to trim excess production, which the domestic market isn’t able to absorb.
According to the industry association, Morbi’s products are facing tough competition from the Chinese tiles in the overseas market. While exports have increased by almost 80 per cent over the past three months, the deficient monsoon has weakened the domestic market. All such conditions together led to the Morbi’s excessive production capacity. Hence, the association announced a month-long vacation in 300 units beginning on August 3, 2022.
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Reasons Behind Morbi Ceramic Industry Taking a Break
Here are a few reasons why the Morbi ceramic industry is going for a month of closure:
- Excessive production of Ceramic tiles
- Demands decreased in the domestic market
- The slowdown in the construction of affordable houses
- Price rise in raw material
- Deficit of monsoon
- Increase in interest rate for home loans
- High piped gas prices tanked exorbitantly following a gas shortage in the world market because of the Russia-Ukraine war.
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Does Closure Have Anything to Do with the Elections/Agitation?
However, Nilesh Jetpariya, president of Morbi-Dhuva Glaze Tiles Association (MDGTA), explained that since there has been excessive production of tiles and the demand has gone low, the units have to clear tiles stockpiles which had been scaling up for the last few months. Hence, the shutdown has nothing to do with either agitation or election.
Adding to it, Jetpariya said that they have produced about four crore square meters (Sq. M) of tile every month and exported approximately 1 crore square meters of it to the Gulf countries, Africa, America, and Europe. However, the exports have declined to about 70 containers a day from around 300 containers three months ago. Thus, a huge stock of tiles has been piled up in the godown. The prime reason for closure is to clear the pile. He further clarified.
