Ceramic players hike prices to cover loss from shutdown

The industry was on strike since Nov 27 and had incurred daily losses to the tune of Rs 50 cr

Morbi-based ceramic units have hike their ceramic products' prices in a bid to cover their loss of business that they incurred during the last 25 days strike.

The ceramic industry ended its strike on Sunday after the state government assured to resolve their issues on gas price and VAT. The industry was on strike since November 27 and had incurred daily losses to the tune of Rs 50 crore.

However, it is a second instance in last two months that the industry has increased the price of ceramic products. Earlier in October the ceramic industry had hiked prices by 20 per cent. "Many ceramic units have increased prices by 5-10 per cent on their products to recover losses incurred during strike. It became inevitable to do so since our production cost had gone up due to higher natural gas price," said Divyesh Patel, president of Morbi-Dhuva Glaze Tiles Association.

Industry sources said that the main reason for the price hike was high gas price even as currently price level of LNG ceramic manufacturers must have to gain price in order to sustain their business. What's more, the new price rates will be applicable for both new orders as well as pending orders.

Gujarat State Petroleum Corporation Ltd (GSPC) had increased the LNG price to Rs 46.60 per cubic metre in November, following which the ceramic industry decided to go on strike. However, Thangadh-based ceramic players are still considering whether to hike price or not. "We have not decided to increase the price but we are considering to do it as during the year prices of gas, raw materials and transportation have increased," said Suresh Sompura, president of Federation of Ceramic Industries, Thangadh. Thangadh based ceramic units will meet to discuss on price rise in next two to three days.

Meanwhile, Sompura said that if they do so, the Thangadh-based industry players will increase product rates by 5 to 10 per cent.