AGRA Geopolitical tensions in West Asia are sending shockwaves through the historic glass and bangle industry of UP’s Firozabad. Widely known as ‘Suhag Nagari,’ the manufacturing hub is grappling with a severe supply chain crisis, leading to factory closures, a sharp drop in production and dwindling international orders.
The crisis lies in the sudden disruption of essential fuel needed to operate the city’s glass furnaces. Firozabad heavily relies on Regasified Liquefied Natural Gas (RLNG), but the ongoing conflict involving Iran, Israel and the US has severely constrained supply lines.
Out of the 200 registered glasswork units in the city, only 130 to 140 remain operational. The rest have been forced to shut down entirely.
Binni Mittal, president of Industrial Estate Cooperative Society in Firozabad said: “Production has gone down by 50% to 60% with a cut in gas supply and declining orders. Running cost for units has risen as gas provided by the Gas Authority of India Ltd (GAIL) is affected by the West Asia conflict.”
“Recent attacks on Qatar-based energy infrastructure has hit gas supply hard. The Regasified Liquefied Natural Gas (RLNG), forming half of the gas component supplied to Firozabad, comes from Qatar and is not coming these days. The other option of spot gas is four times the cost and makes it nearly impossible for manufacturing units to run,” said Mukesh Bansal Toni, chairman of Glass Manufacturers and Exporters Association in Firozabad.
The fuel crisis is compounded by a collapse in international demand, particularly from the US, historically the biggest buyer of Firozabad’s glassware craft, accounting for 60% of total exports from the city.
Manufacturers rely on a massive surge in orders for decorative items ahead of the Christmas season. However, the ripple effects of the West Asia war have brought about a decline in this lucrative trade, said Bansal.
“Firozabad exports candle stands, flower pots, household decorative pieces to the US. Our major exports are customised items, bangles and decorative pieces on occasions including Christmas, Halloween and harvest festivals in the US,” he added.
“It is turning out to be a long wait for foreign buyers who place orders during this part of the year. The conflict in West Asia, cut in production due to energy costs, restricted availability of gas and rise in production cost are sure to have a long lasting impact on the exports from Firozabad this year,” he warned.
In a 1996 judgment (MC Mehta Vs Union of India), the Supreme Court expressed concern over impact of industrial pollution on Taj Mahal and use of coal/coke by industries within the Taj Trapezium Zone (TTZ), which included Agra, Mathura, Firozabad and part of Bharatpur.
Industries in TTZ area were asked either to shut down, move to eco-friendly fuel supplied by GAIL (gas), or relocate beyond the region earmarked as TTZ.
While most of the units, mainly foundry industries in Agra chose to shut down, the glass units in Firozabad smoothly switched to eco-friendly fuel.
“Approximately 4 to 5 lakh labourers depend on the glass industry for their livelihood in Firozabad. Most of the units are struggling to retain their skilled labour,” said Mittal.
Shocks are not new to the city’s glass industry, but with competition having already intensified over the years on account of China trying its hand at bottle making and decorative items, Firozabad’s glass unit owners are looking for an early end to the West Asia war.
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