Firozabad's Glass Industry Faces Crisis Amid Gas Shortages
Severe Gas Shortages Impacting Glass Production
Firozabad, known as India’s historic 'Glass City,' is currently grappling with a significant crisis due to gas shortages caused by ongoing conflicts in the Middle East. This energy shortage is disrupting supply chains, leading to a scarcity of glass bottles, jars, and vials, which are becoming increasingly expensive just as the summer demand for beverages and other products is on the rise.
Shishir Sathyan, co-founder of Bengaluru-based Mossant Craft Kombucha, has been struggling for the past month to find glass flasks for their premium beverages. He expressed frustration, stating, 'There’s nothing out there for us to buy right now.' He emphasized that this is particularly challenging as beverage sales typically surge during the warmer months. To manage the increased costs, the startup is reducing marketing efforts and discounts, according to a report.
The crisis began when tensions in the Gulf region disrupted imports of liquefied natural gas (LNG) and liquefied petroleum gas (LPG). The Indian government has prioritized domestic household needs, diverting gas from energy-intensive industries. Despite a recent two-week ceasefire between the US and Iran, manufacturers believe that relief is still weeks away, with concerns that the truce may not hold.
Firozabad has been producing glass using traditional methods for over 400 years. The town’s furnaces operate at nearly 1500 degrees Celsius continuously. Restarting these furnaces after cooling down can be prohibitively expensive and time-consuming. Due to its proximity to the Taj Mahal, factories are restricted to burning natural gas, and the use of higher-emission fuels is prohibited. A reduction in gas supply from companies like GAIL India Ltd. could lead to a drastic decline in production.
Mukesh Kumar Bansal, a partner at Shri Sitaram Glass Works, one of the larger manufacturers, supplies bottles to major global spirits companies such as Diageo and Pernod Ricard, as well as Indian firms like Haldiram. He has been in the business for four decades and noted, 'I have never seen such a sudden squeeze.' His company has reduced output by up to 50% and increased prices by as much as 20% to cover fixed costs while producing over 100 tons of glass daily.
The repercussions are widespread. Liquor bottle manufacturers are facing challenges, impacting companies like Radico Khaitan. Suppliers of jam jars to brands like Tops have halted new orders. Producers of medicine vials and cosmetic jars are experiencing cost increases of 20-30%. Isak Fragrances, a perfume and attar maker, announced it would raise prices starting in July due to a 40% increase in glass container costs. Even everyday items like milk bottles and household glassware are becoming harder to find.
In Gujarat, Maaricha Glass has shut down two of its five production lines and stopped accepting new export orders. Meanwhile, in Assam, Iconic Glass, the state’s sole glass manufacturer, has completely halted its container plant due to insufficient LPG cylinder supplies. Its clients include local pharmaceutical companies and consumer goods firms like Dabur.
The broader economic impact is evident. In March 2026, India’s manufacturing activity slowed to its lowest level in nearly 4.5 years, as reported by the HSBC India Manufacturing PMI. The index dropped to 53.9 from 56.9 in February, with companies citing rising costs, uncertainty stemming from the Middle East conflict, and declining demand.
S R Glass Industries in Firozabad, which supplies liquor bottles and jam jars, has put its expansion plans on hold. Managing Director Pranjal Mittal, who also operates bangle factories, anticipates that the disruption could last for months. He remarked, 'If the war extends by one week, our business scenario gets disturbed by one month.' This means that the next four months are already affected.
Experts indicate that India’s heavy reliance on Middle Eastern suppliers for energy sources like LPG (nearly 90%) and a significant portion of LNG, which transit through the Strait of Hormuz, has made the country vulnerable. Although the Indian government claims that domestic production and imports from various countries have alleviated some pressures, factory owners remain anxious about long-term uncertainties.
For the thousands of workers and small workshops in Firozabad reliant on the glass industry, the upcoming weeks appear challenging. Many are concerned that if gas supplies do not improve soon, hundreds of small and medium enterprises could face closure, jeopardizing jobs in a town of 2.5 million people that has depended on glass production for centuries. While the fragile ceasefire provides some hope, until LNG and LPG supplies stabilize and reach factories, India’s glass-dependent sectors — spanning beverages, spirits, pharmaceuticals, and food packaging — will continue to encounter elevated costs and supply challenges.