Morbi’s ceramic cluster has staged a significant recovery from its worst operational crisis in recent memory. Gas consumption – which had collapsed to just 0.36 mmscmd serving 83 units at the end of March — rebounded nearly 20-fold by early June, according to industry sources cited by DeshGujarat on June 2. The turnaround was enabled by Gujarat Gas sourcing natural gas from non-Middle East markets at spot rates, with 675–700 units projected to be operational by May. However, the recovery has come at a cost: PNG prices for Morbi manufacturers have risen sharply from ₹41.6 per SCM to ₹75 per SCM – nearly double – against ₹68 per SCM paid by other industrial consumers in Gujarat. Many manufacturers have also moved from long-term gas contracts to shorter monthly agreements, reflecting continued uncertainty on fuel supply.
What this means for the trade: Morbi is back online, but elevated gas costs are structurally embedded into production — the two recent price hikes are a direct consequence, and further corrections cannot be ruled out if global gas markets stay volatile.
