What’s irking tile manufacturers in Morbi?

13 Sep 2021 CW Team

Tile manufacturers in Morbi are crying foul over a hike in natural gas prices by Gujarat Gas, their main fuel supplier. The Rs 4.37 per SCM hike (excluding taxes, for a three-month minimum guaranteed offtake) in prices will cost the industry about Rs 100 crore extra a month, given that the 950-odd units in the area consume 70 lakh cu m of gas daily.

“The 10-12 per cent increase in gas prices comes at a time when we are already struggling to cope with higher coal and freight charges, both of which have almost doubled,” says Mukesh Kundariya, President, Morbi Tile Association, and Managing Director, Segam Tiles. “Our production cost has increased by 12 per cent.”

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