Firozabad, India’s historic “Glass City,” is facing a severe crisis as gas shortages triggered by the Middle East conflict force factories to slash production.
The energy crunch is rippling through supply chains, making glass bottles, jars, and vials scarce and more expensive just as summer demand for beverages and other goods begins to rise. At Bengaluru-based Mossant Craft Kombucha, co-founder Shishir Sathyan has spent the past month desperately searching for glass flasks for their premium drinks. “There’s nothing out there for us to buy right now,” he said. “It’s the worst time of the year to have this problem,” noting that beverage sales usually pick up sharply during the hot months. The startup is now cutting back on marketing and discounts to absorb the higher costs, said a Bloomberg report. The problem started when tensions in the Gulf disrupted imports of liquefied natural gas (LNG) and liquefied petroleum gas (LPG). The Indian government prioritised domestic household supply, diverting gas away from energy-intensive industries. Even with the recent two-week US-Iran ceasefire, manufacturers say relief is still weeks away, and many fear the truce could prove fragile. For more than 400 years, Firozabad, Uttar Pradesh, has produced glass using traditional methods. The town’s furnaces operate continuously at close to 1500 degrees Celsius. Restarting these furnaces after they have cooled could be prohibitively expensive and time-consuming. Since the town is near the Taj Mahal, the factories can only burn natural gas, and the use of fuels with higher emissions is not allowed. If the supply of gas from companies such as GAIL India Ltd. is cut, production in the factories will decline dramatically. Mukesh Kumar Bansal, a partner at Shri Sitaram Glass Works — one of the larger producers — supplies bottles to global spirits giants like Diageo and Pernod Ricard, as well as Indian companies like Haldiram. He also exports decorative items to retailers such as Walmart and Target. In four decades in the business, he says he has “never seen such a sudden squeeze.” His firm has cut output by up to 50% and raised prices by as much as 20% to cover fixed costs while producing over 100 tons of glass daily. The impact is spreading fast. Liquor bottle makers are struggling, affecting companies like Radico Khaitan. Jam jar suppliers to brands like Tops have paused taking new orders. Medicine vial and cosmetic jar producers are seeing costs jump by 20-30%. Perfume and attar maker Isak Fragrances says it will have to increase prices from July after paying up to 40% more for glass containers. Even milk bottles and everyday household glassware are becoming harder to source. In Gujarat, Maaricha Glass has shut down two of its five production lines and stopped accepting new export orders. In Assam, Iconic Glass — the state’s only glass manufacturer — halted its container plant entirely after failing to get enough LPG cylinders. Its clients include local drugmakers and consumer goods firms like Dabur. The broader economy is feeling the pinch. In March 2026, India’s manufacturing activity slowed to its weakest level in nearly 4.5 years, according to the HSBC India Manufacturing PMI. The index fell to 53.9 from 56.9 in February, with companies citing higher costs, uncertainty from the Middle East conflict, and softer demand.S R Glass Industries in Firozabad, which supplies liquor bottles and jam jars, has shelved expansion plans. Managing Director Pranjal Mittal, who also runs bangle factories, expects the disruption to last for months. “If the war extends by one week, our business scenario gets disturbed by one month,” he said. “That means the next four months have been disturbed right now.” The experts say India has become vulnerable due its enormous reliance on Middle Eastern suppliers for energy sources such as LPG (nearly 90%) and a significant portion of LNG, which go through the Strait of Hormuz. Though the Indian government states its domestic production and imports from many countries have successfully reduced some of these pressures, however, factory owners still feel anxious and are concerned about long-term uncertainty as well. For the thousands of workers and small workshops in Firozabad that depend on the glass industry, the coming weeks look tough. Many fear that if gas supplies do not improve soon, hundreds of small and medium units could face closure, threatening jobs in a town of 2.5 million people whose economy has revolved around glass for centuries.The fragile ceasefire offers some hope, but until LNG and LPG flows stabilise and reach factories, India’s glass-dependent sectors — from beverages and spirits to pharmaceuticals and food packaging — will continue to face higher costs and supply headaches.
