The ceramic industry body in Gujarat has threatened to stop production in all ceramic units from midnight if the state government fails to meet their demands, especially the reduction in gas prices.
"Frequent hike in natural gas prices is acting as a major roadblock for the industry and making it difficult for the units to maintain their competitive edge in the domestic as well as the global ceramic tiles market," Morbi Dhuva Glazed Tiles Association General Secretary Chuni Patel told reporters here.
In this backdrop, the Association recently submitted a memorandum to Morbi District Collector seeking a solution to the pressing issues of the ceramic industry.
Ceramic tiles industry of Morbi has more than 500 units and claims to contribute around 75 per cent ceramic tiles production in the country.
The Association has claimed that the state-run Gujarat State Petroleum Corporation (GSPC) has hiked gas prices by a whopping 130 per cent in two years.
In addition, according to the association, GSPC has added a particular clause in the gas supply agreement, which makes consumption of 80 per cent of the total allocated gas quota mandatory.
"This clause means the units are liable to pay charges for that much amount of gas even if it does not use that much quantity of gas," Patel said.
The Association has demanded reconsideration in the recent hike in gas prices.
Further, the removal of anti-dumping duty on Chinese tiles has raised questions about the survival of the industry.
The complicated tax structure on ceramic tiles as compared to marble and granites has, according to Patel, added to the woes of the industry.
