Morbi Ceramic Units Restart on Expensive Piped Natural Gas

22 Apr 2026 CW Team

The ceramic cluster in Morbi has resumed manufacturing after a period of disruption, with producers citing a sharp rise in the cost of piped natural gas (PNG) as a key factor in recent decisions. Companies halted or scaled back operations earlier when fuel economics eroded margins, and the restart follows arrangements to secure PNG at elevated rates. Producers have adjusted selling prices sharply, with an across the board increase of 40 per cent aimed at restoring viability.

Manufacturers reported that the price revision was necessary to offset higher input costs associated with firing, drying and other heat intensive processes that rely on PNG. Firms recalibrated price lists and communicated the changes to distributors and trade partners, emphasising that the adjustment reflected changes in underlying energy costs rather than product revaluation. The move has been framed as a cost recovery measure to stabilise cash flows and ensure plants can operate without further interruptions.

The increase has altered marketplace dynamics, with buyers and wholesalers revising procurement plans to accommodate higher selling prices. Trade participants have indicated that negotiations are under way over delivery schedules and payment terms as the market absorbs the shock. Analysts of the sector view the development as a test of demand elasticity for ceramic products produced in the region and of the ability of firms to pass through energy cost increases.

Longer term, industry observers expect companies to explore efficiency measures and alternative fuel mixes to reduce exposure to volatile PNG prices while maintaining production continuity. Firms are also assessing inventory and order books to balance supply and demand constraints created by the sudden price adjustment. The restart under higher energy costs underscores the sensitivity of commodity intensive manufacturing to fuel pricing and the trade offs firms must manage between output and profitability.

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