Gujarat Mills face pulp shortage

The ripple effects of the escalating conflict in West Asia has begun hitting the industrial heartland of Morbi in Gujarat. Supply disruptions of imported waste paper, surging coal prices and a halt in propane gas supplies are pushing the region’s paper mills and ceramic factories toward a potential shutdown within the next 8 to 10 days, threatening one of India’s most critical industrial clusters.

Paper mills in Morbi largely depend on imported waste paper as their primary raw material, but shipments that usually arrive through ports have abruptly stopped because of disruptions in international maritime routes triggered by the war.

This sudden choke in supply has triggered a dramatic price shock. Containers of waste paper that earlier cost $3,600 are now commanding nearly $5,600, sharply escalating production costs and squeezing already fragile margins.

Industry leaders warn that the crisis is fast approaching a tipping point.