A severe energy shortage triggered by the Middle East war has forced the shutdown of India’s $6.5 billion ceramic production hub in Morbi, Gujarat. The once-bustling factories now stand idle, with only a few workers loading the last shipment produced three weeks ago. The disruption stems from the Iran war and the closure of the Strait of Hormuz, which has halted gas supplies critical to ceramic manufacturing.

According to the local producers’ association, most factories in Morbi, which accounts for about 80 percent of India’s ceramic output, have been closed for nearly a month due to the gas crisis. The industry, valued at around $8.1 billion, employs roughly 400,000 workers who are now affected. Factory owners report that both propane and natural gas supplies have dwindled, forcing them to suspend operations.

Advisers to the Morbi Ceramic Manufacturers Association said about 550 factories have stopped production, with only a few operating where gas is still available. The shutdown is expected to continue until April 15, raising concerns of domestic shortages as inventories decline from April onward.