Gas curbs, weak exports: Why Firozabad’s glass industry is under pressure

The Agra Fort once served as the administrative nerve centre for three Mughal rulers. Back in the day, markets used to be set up within the premises, and glass bangles and other glass products were a big draw for shoppers. Today, just 40 kms away, the hub that makes these products has lost its gleam as West Asia tensions disrupt both costs and supply.Firozabad is home to over 200 manufacturing factories and another 200 units specialising in finishing and decorating products for exports. Natural gas forms the backbone of production, accounting for 30–35% of total costs. Furnaces need to run round the clock at temperatures as high as 1,500°C to melt raw materials such as glass, soda ash, limestone, and dolomite.However, following the escalation in the Iran conflict, authorities invoked the Essential Commodities Act, 1955, capping gas usage at 80% of the previous six-month average. This has created a sharp mismatch between required and available fuel. “Our production is down to 50-60% because of this. Earlier, we would make 5 lakh bundles of 350 bangles each in a day, now it’s down to 2.5 lakh bundles,” says Hemant Agarwal, Director, Electronic Glass Industries. “About 20-25 units who couldn’t function with a 20% gas cut have shut down,” adds Mukesh Kumar Bansal, President, Glass Manufacturers & Exporters Association & Founder, Sri Sitaram Glass Works.The gap between input costs and realisations is widening. While gas supply has been curtailed, input and logistics costs have surged. Bansal says shipping costs have nearly doubled, with container rates rising from $3,500–$3,600 to $6,000–$6,500. Even plastic packaging used for glass bangles has become costlier by 70–80%, as per Agarwal. “Costs have gone up, but retail prices haven’t. That’s squeezing margins,” Bansal adds.At the same time, demand-side pressures are compounding the stress. Exports, especially to West Asia, have weakened significantly. Products made with decorative beads—heavily dependent on Arab markets—are seeing a slump in orders. The industry was already dealing with the after-effects of tariffs imposed earlier by former US President Donald Trump.While those duties were later struck down by the country’s Supreme Court, exporters say the disruption to order cycles created a lasting dent. Bansal says, “Exports have been down 60 percent since the tariffs. During the Christmas buying season, tariffs were in place and buyers cut orders by half. That impact will last through the year.”The slowdown is now spilling over to labour. With production down, many units have shifted to rotational work schedules. A truck driver notes that where a lorry carrying chemicals was earlier unloaded within a day, it now takes at least two—reflecting slower factory throughput. A factory worker adds that his income has dropped, with working days falling from 25 a month to 15–20.Firozabad accounts for nearly 70% of India’s unorganised glass production and supports over five lakh livelihoods, directly and indirectly. But structural constraints leave little room to manoeuvre. The city falls within the Taj Trapezium Zone, a 10,400 sq km protected area around the Taj Mahal. Following a 1996 Supreme Court ruling, industries here were barred from using polluting fuels like coal and coke. As a result, natural gas remains the only viable fuel.This lack of alternatives, combined with supply curbs and weakening demand, has created a widening gap between production capacity and actual output—putting one of India’s oldest glass clusters under sustained pressure.First Published: May 1, 2026 3:09 PM IST

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