Morbi's ceramic ind incurs Rs 100cr loss

Morbi's ceramic industry has come to a virtual standstill. With a large number of workers staying away from work fearing arrests in the wake of the police complaint filed late last month over an alleged assault on excise officials, Morbi, which accounts for close to 70 per cent share in the ceramic business, is facing losses to the tune of Rs 10 crore a day.

Workers did not report to duty after January 23, when officials of central excise were allegedly assaulted while conducting surveys and searches at some units in the region. A police complaint was lodged against a mob of 100 people immediately after the assault.

At present, around 225 ceramic units and over 60 sanitaryware units are functional in Morbi. Close to 70,000 people work in the ceramic industry here, which manufactures 1.5 million sft of tiles a day.

"The issue has to be resolved at the earliest. We are trying to persuade workers to resume duty. If the present scenario continues, it will lead to a bigger repercussion as China will dump its goods more aggressively. Also, we are getting calls from the pending enquiries," says Veljibhai Patel, president of Morbi Ceramic Tiles Manufacturing Association.

According to Girish Pethapara, president of the Gujarat Vitrified Tiles Association, China sells ceramics worth Rs 300 crore a year in India. "If we don't deliver on time, customers will divert to the Chinese products," he said, adding that the problem will only worsen if arrests are made in the case.

While the workers' association has remained passive over the issue so far, local sources said that the union could swing into action if the logjam continues. Worse still, the Morbi Sanitaryware Association, which has around 50,000 workers, too could extend support to ceramic tiles workers.

"If need arises, we will support the ceramic tile workers," said Karsan Adroja of Morbi Sanitaryware Association.