Far from the war in Iran, disruptions to the flow of oil and gas flow to Uttar Pradesh, India’s most populous state. Manufacturing clusters with specialized supply chains dot the densely populated countryside. Each region specializes in trade: copper in Moradabad, leather in Kanpur, carpets in Bhadohi and glass in Firozabad.
Now in Firozabad, glass factories that rely on imported natural gas, mainly from the Persian Gulf, are facing shortages and high prices. At risk is the livelihood of up to a million people who rely on glassmaking for work.
Factories in Firozabad, just 21 kilometers from the Taj Mahal, have been banned from using coal-fired furnaces since 1996 to protect the monument’s marble façade.
In the city, hundreds of small and medium-sized firms produce everything from bottles and beads to chandeliers and lamps, generating more than $1 billion in revenue in a good year, including $200 million in exports.
Poles pass through the city. India’s economy is now among the largest in the world, just behind Germany and Japan, yet unemployment remains stubbornly high. Labor-intensive industries such as glassmaking are important for putting more people to work and turning the country’s large labor force into a competitive advantage. The challenge is growing, with nearly nine million new people entering the job market each year.
India is the world’s third largest importer of oil and gas, and as its economy grows, so does its import bill. At the beginning of the war in Ukraine, refiners turned to the use of reduced Russian crude. But after pressure from the Trump administration to stop buying from Russia, they returned to traditional suppliers: Iraq, Saudi Arabia and other countries that depend on shipping through the Strait of Hormuz.
Here, the impact is not felt at the gas pump. The Indian government keeps diesel and gasoline prices stable, and few locals own cars. However, shortages and rising natural gas prices threaten the factory’s centuries-old operations.
Firozabad’s glass tradition dates back to the 16th century, when Emperor Akbar had Mughal trinkets recycled in the local furnace. Today, a thousand trucks full of broken glass arrive every day from all over India and beyond. Since March, mountains of shards have piled up untouched, because melting them has become too expensive.
Even before the power crisis, the industry was struggling. Local glassmakers were losing out to Chinese rivals with more advanced factories. Most Chinese glassmakers use electric furnaces, an option that is out of reach for many businesses in Firozabad. Moreover, India’s grid is not stable enough to deliver reliable and affordable electricity to such projects. As oil prices rise, China’s cost-benefit ratio only increases.
It’s been three decades since Firozabad got superpower – when measures to protect the Taj forced the switch to electricity. At that time, only one third of the glass factories survived the change.
In the traditional markets of Firozabad, the situation still looks overwhelming. Cycle rickshaws filled with plain, unpainted glass nudge towers of brightly colored bangalores as hawkers fill shops.
These bangles, sold for 2 cents a piece, may be among the cheapest joys in the world. Even before the crisis, the boundaries were narrow. Now the prices have increased by almost 30 percent.
Mukesh Bansal, a local glass manufacturer and vice-president of the All India Glass Manufacturers’ Federation, kept his workers on top. But due to the lack of gas, he has been forced to almost turn off one of his two fireplaces. By April, his factory would have started making Christmas decorations for shipment to the United States. This year, it didn’t happen.
The furnaces in Firozabad, which produce about 70 percent of India’s glass, must always burn at about 2,700 degrees Fahrenheit. This requires thousands of kilos of electricity every day.
“We are not part of the war, but we are burdened by it,” he said.
The difficulty is widespread among consumers. Suraj Mehta, chief strategy officer of Hindusthan National Glass & Industries, said glass bottles have become “difficult and expensive to procure” across India in the past two months. Glassmakers absorbed about half of the increase, passing the rest on to brewers, soft drink makers, auto repair shops and medical providers.
Binni Mittal, president of the Industrial Estate Cooperative Society in Firozabad, owns a bangle factory, employing hundreds of workers who heat, shape and cut the hot glass into bangles. His average gas has dropped by 20 percent, forcing him to cut output by 40 percent.
In an air-conditioned room near his furnace, Mr. Mittal is watching the rise in gas prices. The supply is still tight, but the prices have increased significantly.
“If the war continues like this,” he said, “our industry will be destroyed.”
Before the war in Iran, Mr. Mittal was a shortage of workers. Now he’s worried that layoffs could mean he’ll lose out forever, even if electricity prices return to normal. In the past, he would hire an army of workers, but the work is so punishing that few families want their sons to do it. Last month, it was 108 degrees Fahrenheit in the shade and the highest near the fireplace.
He no longer rents.
In an open labor market in Firozabad, Saddam Hussein, a 32-year-old glass cutter, waits for work. He used to support his wife and three children with a salary of about $6 a day. Last month, he got only four or five days of work.
“The war is over, but we are being killed here,” he said. “If I don’t get a job, my family will starve.”
As the conditions of the workers deteriorate, discontent increases.
A few weeks ago, thousands of electronics workers took to the streets in parts of Uttar Pradesh bordering New Delhi to protest against wages and working conditions. The factory gates were full. Police fired tear gas and arrested hundreds. Many complain that wages have been falling due to the cost of living even before the power crisis raised the price of essentials like cooking gas.
Other industries are also feeling the pressure on capacity and employment. In Khurja, about 50 miles southeast of Delhi, artisans have been making pottery since ancient times.
“Fuel is the main component of our product,” says Shalabh Singhania of RK Potteries, estimating that it accounts for 30 to 35 percent of the cost. His furnace runs at a lower temperature than the glasses, which allowed him to cover the month of March without damage.
The business needs a lot of workers. “One cup falls into the hands of 30 workers,” he said. He was hesitant to lay off the workers, because most of them had traveled long distances to work and rarely returned when they left.
He estimated that at one point, 98 percent of Khurja’s furnace was closed. They reopened after the government allowed them to burn diesel, which is normally banned to curb air pollution in Delhi. While his factory makes household appliances, others in Khurja produce ceramic shutters for India’s growing power grid – a sign that the energy shortage is also putting pressure on materials needed to ease it.
Industries like Mr. Singhania relies on tightly knit networks of cooperation between owners, workers and consumers. “If one link breaks in this chain, the whole chain breaks,” he said. “The chain is already breaking.”
