Unlike its rich cousin Morbi, which can boast of some of the biggest sanitaryware manufacturing units in India, Than has remained a cluster of medium and small size units. Slump in the construction industry has brought down the demand for its products and has raised serious doubts about the survival of this industry having a turnover of around Rs 400 crore.

“We are no longer in a position to continue at the current production cost,'” said Than Ceramic Association president Suresh Sompara. The industry is facing the toughest competition from the ceramic goods made in China. “The units can no longer afford to continue as demand is very less and they have to pay 15 per cent VAT,” he added.

As a result, Than Ceramic Association has announced a closure from February 7. Though it is not mandatory for the units to follow the bandh call, almost all units have stopped kiln for a fortnight.

“It is a double whammy. On one hand, the demand has gone down and on the other, cheap goods supplied by China have virtually thrown us out from the market,” said Shailesh Patel, a unit owner.

Morbi and Than, the most famous ceramic centres in the state, are located on the border of Rajkot and Surendranagar. The two towns jointly produce nearly 80 per cent of the country’s ceramic goods. However, it is Morbi, with big players like Euro and Sogo, that calls the shots and bags major export orders. Than with the manufacture of washbasins, mugs, cups and saucers, and tiles, caters to domestic market. Morbi has also been affected by the slump in the construction industry.

Unlike farming and construction, ceramic industry attracts local labourers, who migrate from nearby villages. “We are concerned about the workers, as there could be thousands of them. We are not in favour of shut down, but we were left with no option,” said Sompura.

The association is set to make a strong representation to the government to slash VAT rates.