Morbi Tiles Price
Morbi is one of the leading tile manufacturing hubs in India and has over 800 tile factories. The ceramic industry in Morbi is currently experiencing recession. Due to this, the prices of tiles have increased. This is also due to the increasing cost of production. There are several factors that have contributed to the price rise in the Morbi ceramic tiles.
One of the reasons for the increase in the morbi tiles prices is the hike in the price of gas. In December, the Gujarat Gas Limited (GGL) increased the prices of natural gas by Rs. 4.37 per cubic meter plus tax. Since then, the price of gas has continued to increase.
The sudden rise in the price of gas has forced Morbi industrialists to drastically cut their production. It is important to know that the Morbi cluster is the largest tiles manufacturing zone in the country and accounts for 75-80% of the Indian tiles.
Morbi Tiles Price Rise
The Morbi ceramic industry group is planning to raise the prices of tiles by about 10-15 percent. This is expected to help the companies cope with the increase in costs. However, it is believed that this could cause problems for the small players in the ceramic industry.
The Morbi cluster includes over 800 tile factories and is the biggest ceramic zone in the country. Over the last few years, the prices of tiles have gone up by at least 20 to 40 percent. As the price rises continue, more factories will have to shut down. These include manufacturers of Nano Tiles and Double Charge Tiles.
The Morbi ceramic tile industries have suffered a lot from the gas price hike. A recent meeting was held between the members of the Morbi Ceramic Association and the Gujarat Gas Company to discuss the new price. While the association was expected to give a prior notice to the industries, it was not so.
Many factories in Morbi started using LPG bottle gas, propane gas, and other fuels. Some have also started using a mix of the three. They say that the price hike has been caused by the global market volatility.
The price hike in the gas has forced Morbi ceramic industries to discontinue production of many sizes of wall tiles. At present, 450 units are still operational. But they will have to close down soon.
Moreover, the morbi ceramic tile industry has faced restrictions in the raw materials. Rajasthan has banned the import of potash and soda feldspar chips outside the state. Hence, the Morbi ceramic industries have to buy their key raw materials from Rajasthan. Later, the products are processed at Morbi.
The increase in the prices of gas has put a strain on the small and unorganized players of the ceramic industry. Therefore, the government may start cooperating with other industries to ensure the sustainability of the ceramic industry in the region.
Earlier, the prices of tiles were fixed by the industrialists. However, the increase in the prices has affected the supply and demand of the tiles. Besides, the price hike is a blow to the overall profit margins of the ceramic industries.