Ceramic units in ‘pottery town’ of Khurja face closure amid the West Asian crisis

The winds of war in West Asia have reached the ‘pottery town’ of Khurja, dousing the gas-fuelled furnaces of several units and leaving stakeholders anxious.

In Khurja, ceramic units run on gas. It is supplied in two forms: industrial LPG cylinders and Piped Natural Gas (PNG) supplied by Adani Total Gas Limited at international market prices.

“There is a massive shortage of commercial LPG cylinders, and their price has increased from ₹67 per kg to ₹98 per kg in the last week. It is practically unavailable for the last four days, forcing more than 90% units to shut operations,” said Ravi Rana, president of Pottery Manufacturers Association.

Meanwhile, Adani Total, in a letter to subscribers earlier this week, said the existing rate of ₹49.5 per standard cubic metre (SCM) will apply to only 40% of daily consumption. The rest will be considered “excess gas” and charged at 119.90 per SCM.

Citing escalation of geopolitical developments in West Asia, the letter said that the company had received a gas supply curtailment notice from its upstream suppliers and transporters, resulting in disruption and reduction of supply and attendant operational and pipeline hydraulics constraints.

“The letter also asks customers to make alternative arrangements. We will take up the matter with the government on Thursday by knocking at the doors of the District Magistrate,” Mr. Rana said.

Special package sought

Holding the U.S. responsible for the crisis, Guljeet Singh Manhas, secretary of Khurja Exporters’ Association, sought a special package from the government on the lines of the support provided during COVID-19.

There are around 325 MSME units in Khurja, involving 15,000-20,000 workers and artisans, with a monthly business of around ₹50-70 crore.