Since October 5th, there has been an intolerable increase in price. Ceramic tile has not been an exception. Prices for natural gas earlier, exempt from tax, were Rs 37.36. The new price of 47.51 MGO was increased by Rs. 19.75 without tax, i.e., with tax, without providing a single minute of time overnight, which the ceramic industry leaders deemed to be completely wrong. More than 200 factories that produce 18 12 size will not produce in the initial phase. proposal to terminate other units following a brief meeting. 
Despite the fact that the raw materials for the ceramic hub Morbi were in good condition, the industrialists were shocked to see a significant increase of Rs 5 in the price of pipeline gas after raw materials and decided to close all wall tile factories for the upcoming month and reduce production in accordance with supply and demand laws. Is. Currently 200 units producing wall tiles in the 12 x 18 size will cease operations, and all other units producing wall tiles will follow soon after. All manufacturers have chosen to halt production in order to conform to the market's supply and demand criteria, and that a new movement will begin a month after the last product is discarded. A meeting will be scheduled in the next few days to close the plants producing wall tiles in other sizes as the manufacturers of 12 18 sizes are now ceasing production. It should be mentioned that ceramic units now face a monthly cost of more than Rs 100 crore due to increased natural gas costs. In addition, Nileshbhai warned that the industry would find it challenging to deal with the recent increases in the cost of raw materials, diesel, and trucks, adding that it would not engage in MGOs with the gas company in the near future. New price effective tomorrow: Now, the cost of one cubic meter of gas will be Rs. 37.51 for a three-month agreement and Rs. 38.01 for a one-month arrangement. The ceramics sector is currently working hard to cut costs in order to gain a foothold in the world market. A gas company recently made a hard announcement for the industry in Teva. The price of gas has been set by the gas provider at Rs. Entrepreneurs who raise Rs. 4.37 plus tax are worried. The ceramics sector in Morbi has established a niche for itself on the international market. For the sector, moving forward—even just keeping afloat—has become as difficult as eating beans made of iron. 
This is due to the skyrocketing cost of petrol, which has a significant impact on the pricing of ceramic goods. The gas company abruptly increased today's rate by Rs. 4.37 plus tax, or Rs. More than five prices have soared. Tomorrow, August 24, is when the raise is scheduled to go into effect. As a result, the gas price will now be Rs. 37.51 per cubic meter for three-month agreements and Rs. 38.01 for one-month agreements. More than 7 million cubic meters of gas are consumed daily in Morbi, adding around Rs 100 crore a month to the ceramic industry. The cost of gas varies on the global market. However, Gujarat Gas should announce price increases one month in advance and raise prices every three months. so that businesses can place new orders while considering the increased expense. He added that the industries are losing six months' worth of profits as a result of the unexpected price increase. In the end, they questioned what would happen to the industries that had placed orders based on the previous pricing if Gujarat Gas had announced an instant price increase. The unexpected price increase for Gujarat Gas has industrialists furious. According to businesspeople, the gas company has a three-month agreement. However, the business may at any point declare a price increase. It is unlikely that the gas business will wait three months before purchasing gas from the global market. If it purchases, the gas company will be able to supply gas at the old price even if the price of gas increases on the global market for a maximum of three months. Following Nano and Double Charge, Waltiles and GVT units are now also anticipated to shut down. Due to current production and demand, up to 85 units of the double charge and Nano have been put on hold for a month. There are worries that the gas company's price increase would soon force the shutdown of GVT units and wall tiles. 
If these machines are shut down, the ceramic industry will be the next to sustain significant harm. On January 29, 2020, Gujarat Gas Limited increased the price of gas by Rs. 5.30 per square cubic meter, having an impact on the ceramic industry, particularly in Morbi, the center of the Indian ceramics industry, which is in the Saurashtra area. Much of this recent increase is anticipated to fall on the industry. In the meantime, Gujarat Gas has raised prices twice in as many months; the most recent increase, of 4.50 rupees, occurred in December, bringing the total price increase to 10. It's anticipated that the higher price will go into effect in February 2021. Prior to the price increase on December 29 caused by the cancellation of the 4.50 rupee rebate, the industry was forced to bear a monthly financial burden of close to 100 crores. And with this 5.30 rupee increase in such a short amount of time, the consequences might mean a daily loss of Rs. 3,97,50,000. The following increase is. going to start applying on February 1. The ceramic business would now receive Rs. 35.10 per cubic meter. Gas price reductions and some relief for the industries were anticipated to occur with the Union Budget on February 1st, but many industries may not even make it to that point due to this sudden and unexpected spike. Natural Gas is the most crucial component in the production of ceramic items, hence the industry as a whole has been hampered by the price increases that have occurred repeatedly. 
An increased projection is that roughly 30% of the Wall Tiles sector may cease production as a result of financial strain as a result of the price shift. The larger businesses typically have a surplus of finished items that lasts for roughly one and a half months, and it is mostly the smaller units that will feel the effects of this decision. In order for the industries to manage their new orders based on the new rates, he also implied that the price increase might have very well been disclosed with at least a month's notice. However, given the current situation, he was scared of the industry's uncertain future. According to a GGL spokeswoman, Gujrat Gas Limited, the sole supplier of natural gas to the 1,000+ Ceramics Tile Industries in Morbi, Gujrat, has increased the price in response to the natural gas price volatility on the worldwide market. He added that the price increase had a more significant impact because of the LNG shortage and quick price hike. GGL has pledged, however, to provide a steady supply of natural gas to the businesses in order to reduce the unpredictability brought on by this recent price change. It should be noted that the Gujrat Ceramics business has been booming over the past year, with a turnover of about Rs. 45000 crore and export earnings of over Rs. 12000 crore. It's not too late to see what this price spike does to the business and how far or how long it takes for the industry to recover as a result of China's reputation taking a hit due to Covid. Indian Ceramic player was able to take advantage of the circumstance. Collaborating with traders and importers, regardless of their nationality, would be the pleasure of our proficient exporting team.
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