Ongoing Middle East Crisis Hits Firozabad Glass Works

 

Firozabad: The ongoing Middle East crisis has had a devastating impact on the famous glass work units of Firozabad. The city is internationally known for its glass bangles and other glass products.

The units here are facing a severe energy and transportation crisis. Gas supply problems, rising manufacturing costs and declining orders from the foreign markets have increased the worries of the entrepreneurs of this more than Rs 10,000-crore glass business.

 

Firozabad's glass industry reportedly employs roughly 1.5-5 lakh people directly and indirectly, with over 50 per cent of the city's overall population relying on it for their livelihood.

The glass factories rely on natural gas. The glass furnaces must operate at extremely high temperatures which makes it difficult to halt production if gas supplies are disrupted. The ongoing conflict in the Middle East has impacted the gas supplies and international shipping.

 

Those associated with the glass industry disclosed that the impact of the Iran, US and Israel war isn't limited to gas prices and availability. Uncertainty in the international market and disruptions in sea routes are also causing problems for exporters. The exports of glass bangles, decorative items, candle stands, vases, household items and other glass products made in Firozabad are suffering.

The entrepreneurs disclosed that Firozabad's glass products have a big market in several countries including the US and those in Europe. They receive large orders for decorative glass products before Christmas, Halloween, and other festivals. The war has severely impacted global demand and business amidst uncertainty.

Mukesh Kumar Bansal Tony, President of Glass Export Industries, stated, “Exporters are facing significant difficulties after the US government increased tariffs. Following the 50 per cent tariff, the exporters managed to keep the business going by offering discounts to buyers and coordinating with buyers. However, the announcement of a 200 per cent tariff has renewed concerns in the market.”

 

He further added, “The conflict between Iran, Israel and the US has impacted gas supplies. Production costs have risen sharply due to disruptions in gas supplies from Qatar.” He said the gas prices have almost risen threefold as it is being purchased from the US and Argentina.

Bansal said that the prices of other raw materials used in glass production have also risen. “This is directly impacting production costs along with increased import and export costs of material. The US is the primary market for Firozabad's glass decorative products. Due to a decrease in demand, exports have declined by approximately 35-40 per cent,” he said.

Meanwhile, Assistant Commissioner of the District Industries Centre (DIC) Ganesh Chandra, said that the exporters are being provided benefits under the One District One Product (ODOP) scheme along with other interventions aimed at Micro, Small and Medium Enterprises (MSME) to promote exports.