What led to a month-long break for ceramic tile manufacturers?

The ceramic tile manufacturing units in Morbi have decided to cut production for a month. The decision was taken recently at a meeting organised by the Morbi Ceramic Association. The month-long hiatus, which is now being seen as an equivalent to the Chinese ceramic industry’s annual break in August, has been impelled by numerous factors. These include the slowdown in the construction of domestic projects in view of the rising cost of raw materials like cement and steel and the increase in the rate of home loans.

According to an Impact Assessment Survey report by CREDAI, cement costs have risen by more than Rs 100 a bag, while steel prices have risen 2.3 times from Rs 39,000 a metric tonne (mt) last year to Rs 90,000 to date. What’s more, 66 per cent of the developers feel forced to temporarily stop procurement and shut construction sites while 76 per cent believe they can only continue for another six months if in case raw material prices do not correct and they can’t find immediate relief from the ongoing situation. Being the second largest employment generator in the country, any slowdown or stoppage would directly impact the labour force and their livelihoods across 250+ allied industries.

Morbi’s ceramic industry employs close to 2 lakh skilled and unskilled workers and the ceramic association is preparing a plan to implement the month-long leave for them.

CW takes a deep dive and speaks to the ceramic industry on the ramifications.