Propane is back in Morbi, but rising prices cloud ceramic makers' recovery

What happened

Morbi’s ceramic industry has resumed switching back to propane after supplies recovered from disruption linked to the Iran war in March. Varmora Granito says 80 per cent of its plants now use propane, while Kajaria Ceramics has flagged fresh fuel-price increases and limited visibility on future cost declines.

Confirmed

Global impact / market context

Fuel availability and price directly affect kiln operations, production continuity and manufacturers’ costs. Varmora can switch between propane and natural gas, which may help limit cost pressure when one fuel becomes more expensive; however, the article gives no indication that all Morbi producers have similar options.

Analyst inference

The article describes a recent supply shock: Morbi production shut on March 5 and was largely suspended until April 15 as propane stocks dwindled. Supplies have since returned, but rising prices and uncertainty about future fuel costs complicate the industry’s recovery.

Confirmed

What to watch

1. Watch whether propane supplies remain available to Morbi factories; another shortage could interrupt kiln operations and production, as occurred during the March-to-April shutdown. Analyst inference
2. Track whether propane prices rise further and whether Varmora shifts plants to natural gas from Gujarat Gas, which the company says is available. Analyst inference
3. Look for further statements from Kajaria Ceramics on fuel-price increases and the outlook for future cost declines; the article reports limited visibility so far. Confirmed

Evidence

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