Morbi-based Ceramic industries, which have shutdown operations indefinitely over frequent hikes in gas prices, value added tax (VAT) and excise duty on products, have given a bandh call on December 10 as a mark of protest.
Various associations of ceramic units along with associations of transporters, makers of packaging materials, and other allied industries associated with the sector are also likely to join the bandh in Morbi district.
Having embarked on an indefinite shutdown protesting against gas price hike, ceramic industry players in Morbi, Gujarat, are losing about Rs 50-60 crore worth of business daily. The units have shutdown operations since November 27.
In fact, in the past one week ceramic players have lost more than Rs 500 crore, say industry sources.
The main issues of the industry includes restricted gas supply, rate hike and compulsory consumption clause by Gujarat State Petroleum Corporation (GSPC) Ltd, implementation of guidelines issued by Gujarat Pollution Control Board (GPCB) to stop use of coal-based gasifiers, revision of VAT structure to match that of substitutes such as marble, granite and revision of excise duty for the ceramic products.
"This is not a matter of money, rather a matter of survival and existence for us. Due to strike we are losing about Rs 50-60 crore every day. But the way gas price has gone up we cannot do business as it will increase our production cost and market is not in the position to accept it," said Kirit Patel, president of Morbi Sanitary Ware Manufacturers Association.
The strike is likely to impact more than 200,000 people directly and indirectly associated with the industry. Not only ceramic industry but the strike will impact packaging industry, paper units, transporters and raw material suppliers. Kaushik Patel, exporter of ceramic tiles from Morbi said, "After strike, exporters have not dispatched a single box of ceramic products. All the pending orders are now on halt as ceramic manufacturers are not ready to give us order. This may hurt India's image in international market."
According to Kaushik Patel, Morbi exports ceramic products in more than 64 countries including UK, USA, Gulf, Sri Lanka and African countries.
Morbi supplies 4,000 truckloads of glaze, wall and floor tiles and sanitary ware to different parts of the country on a daily basis. Besides, it also exports 60 to 70 containers of ceramic products daily, each container valued at around Rs 4 lakh. Morbi-based ceramic manufacturers had raised price by 20 per cent with immediate effect before Diwali, following Gujarat high court's direction for strict implementation of the guidelines issued by Central Pollution Control Board (CPCB) with regard to use of gas-based furnaces.
