Your next tile purchase might put a hole in your pocket!
The Russia-Ukraine war has disrupted all commercial ties between the world and the two countries. The entire world has been badly affected by the consequences of such lethal war conditions but the most affected industry is Ceramic-Tiles Industry.
The cost of producing tiles is primarily comprised of soil material (mainly clay) and natural gas. While the main component is the soil material, natural gas accounts for 30-40% of the production cost. Every day, the industry consumes approximately 70 lake cubic meters of gas.
Results of Natural Gas Shortage
The Indian government imports a substantial part of its gas requirements from Russia. The clay is imported from Ukraine. Currently, all routes of international trade with Ukraine & Russia are closed. This will force the Indian government to revise the prices of natural gas and most probably the prices of clay alternatives will also see an all-time high. It is believed that prices of tiles products can increase anywhere from 20% to 40%. This can damage the natural flow of the market and affect small businesses.
Purchase Well In Advance
All of these factors will have an impact on Morbi's ceramic industry too, raising tile market prices in the end. As a stakeholder, Tileswale believes that taking a proactive approach and purchasing tiles and related products early on will be beneficial.