Indian glass manufacturers slash output by 40% due to West Asia gas shortages

Indian glass manufacturers are slashing production due to severe natural gas shortages triggered by the ongoing conflict in West Asia, disrupting supply chains for everything from beverage bottles to pharmaceutical vials. Factories, particularly in Firozabad—India's historic "Glass City"—have cut output by up to 40% after gas supplies dropped more than 20% since early March, forcing one-third of container glass units to shut down furnaces entirely.^[1][2][3]

The crisis stems from India's heavy reliance on imported gas, now pinched by the Gulf war and Iran conflict, which has halted reliable supplies to energy-intensive industries. Glass production requires furnaces to run continuously above 1,000 degrees Celsius to keep molten glass defect-free, making any interruption devastating. According to Bloomberg, this has created scarcities in bottles for milk, liquor, and malt beverages, as well as medicine packaging, affecting buyers from local firms to global retailers like Walmart.[1 from cluster][2 from cluster] The All India Glass Manufacturers’ Federation (AIGMF) warns of losses up to EUR 9.2 million, with sudden shutdowns risking expensive furnace damage and prolonged outages.^[1]

Firozabad, with its four-century glassmaking tradition, bears the brunt, leaving thousands of day laborers jobless during what should be peak export season. Industry estimates show glassware exports, projected to rise 3% to over $4 billion for the year ended March 31, plunged by 20% last month alone due to reduced output, rising freight costs, and a weakening rupee.^[2][3][4] Manufacturers like Mukesh Kumar Bansal report personal output drops of over a third, with small artisans shuttering shops as gas prioritization favors essential services over manufacturing.^[4]

AIGMF President Rrajesh Khosla, CEO of AGI Greenpac, highlighted the peril in a letter to the government, urging priority gas allocation for container glass used in food, beverages, and pharmaceuticals. "This is a difficult situation because glass manufacturing is energy-intensive requiring uninterrupted fuel supply," Khosla said, noting risks of more shutdowns without swift action.^[1] The federation emphasized the broader threat to clients facing product shortages and lost profits.

The ripple effects extend beyond glass, signaling vulnerabilities in India's manufacturing push amid no strategic gas reserves. HSBC's India manufacturing PMI hit a four-and-a-half-year low in March, reflecting market instability from the West Asia turmoil.^[2] Sectors like textiles and pharmaceuticals could follow, as experts warn this crisis in Firozabad is an early indicator for the economy's gas-dependent industries.^[3]

Looking ahead, glassmakers hope for government intervention to stabilize supplies, but prolonged conflict could deepen export slumps and job losses. With furnaces idling and workers struggling to make ends meet, the shortage underscores how distant wars can swiftly upend local livelihoods and global supply chains.^[3][4]