Morbi raises product prices by 10-15% due to increased production cost

31 Aug 2021 CW Team

Morbi, the largest cluster of the ceramic tiles industry in India, has decided to increase its product prices by nearly 10-15%.

The new costs would be in effect from 1st September 2021. The group decided to raise the prices because of the increase in the cost of production like raw materials, coal, natural gas, transportation.

Gujarat Gas Limited (GGL) increased the natural gas cost provided to Morbi and Surendranagar's sanitaryware and ceramic units. GGL hiked the minimum guaranteed offtake (MGO) rate for three months to 4.37 per SCM ( excluding taxes).

Nearly 100 vitrified tile making units have been closed to improve production. Starting September 1, additional 200 units manufacturing wall tiles would be shut for a month.

Mukesh Kundariya, president of vitrified tiles division, Morbi Ceramic Association (MCA), told the media that prices for vitrified tiles have increased by Rs 2 per square foot.

Nilesh Jetpariya, president of, wall tiles division, MCA, said the wall tile price is increased to Rs 15 per box with every box holding 10 foot wall tiles. One box of wall tiles costs Rs 100.

The Morbi tiles industry covers 800 tile factories, and their polished tiles are the most exported products from other types of tiles.

Every year, 20 new factories are developed, and the number grows each year.

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Also read: Ceramic tiles industry: China’s loss is India’s gain

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