Unseasonal Rains and Storms Cause Rs. 450 Crore Loss to Gujarat’s Brick Industry: Devendrabhai Prajapati

~Urgent Government Relief and Policy Intervention Sought: Prajapati
Highlights:-
~Federation demands immediate damage survey and financial aid and implementation of an Insurance policy for Brick Kilns
~Gujarat is home to more than 2,500 large chimney kilns and over 40,000 small hand kilns
~Industry demands for Reduction in GST from 12% to 5%
~The brick industry is the second-largest small and cottage industry in India, after Indian Railways
Ahmedabad, Gujarat, May 18, Devendrabhai N. Prajapati, President of the Gujarat Bricks Manufacturers Federation, Said today, Unseasonal Rains and Storms Cause Rs. 450 Crore Loss to Gujarat’s Brick Industry.
Shri Prajapati said in his statement here today, The brick manufacturing sector in Gujarat has suffered a massive economic blow due to unseasonal rains and severe storms that affected multiple districts between May 6 and May 10, 2025.
President of the Gujarat Bricks Manufacturers Federation said, the damage has resulted in estimated losses of over Rs. 450 crore to brick manufacturers across the state.
He said, Gujarat is home to more than 2,500 large chimney kilns and over 40,000 small hand kilns, forming the backbone of a rural industry that employs between 7 to 8 lakh laborers. These kilns were severely impacted by sudden and heavy rainfall, which not only destroyed raw and semi-finished bricks but also halted production prematurely.
Greater Losses Than the 2021 Cyclone: Shri Prajapati drew a parallel to Cyclone Tauktae, which struck on May 17–18, 2021 and caused substantial losses to the brick industry. “This year’s damage is even more extensive,” he said. “The timing of the rain and storm coincided with a critical production period. Raw materials, bricks in drying stages and baked products were all destroyed. Furthermore, many kilns were forced to shut down early, completing only 40 to 45 percent of their planned production cycle.”
The untimely rains also coincided with the late arrival of migrant laborers from other states, which further disrupted production schedules. With reduced output and increased losses, brick kiln owners are now facing financial strain, and thousands of workers have been left jobless.
A Pillar of Rural Employment: The brick industry is the second-largest small and cottage industry in India, after the Indian Railways, in terms of employment generation. It plays a vital role in the rural economy by providing jobs to crores of laborers nationwide, including a large number of unskilled and migrant workers. Despite its socio-economic importance, the industry continues to face neglect in terms of policy support and protection. “Even as the industry provides employment to rural workers often at wages higher than the government’s minimum wage, the GST on bricks was increased from 5% to 12%, which has burdened small manufacturers and jeopardized the sustainability of the sector,” Shri Prajapati added.
Key Demands from the Government: In light of the recent devastation and ongoing structural challenges, the Gujarat Bricks Manufacturers Federation places the following demands before the state and central governments:
Reduction in GST from 12% to 5%: The brick industry, predominantly composed of small and rural enterprises, cannot bear the current 12% GST rate. A rollback to 5% would help stabilize the sector and make operations viable for small-scale manufacturers.
Immediate Damage Survey and Financial Aid: The Federation requests the Revenue Department of the Gujarat government to conduct an urgent, comprehensive survey of affected kilns across the state and provide financial assistance to manufacturers based on assessed losses.
Implementation of an Insurance Policy for Brick Kilns: The Federation has long advocated for a government-backed insurance scheme to protect brick kiln owners from losses due to natural disasters like rain, floods, and storms. Similar to crop insurance for farmers, such a policy is essential for the survival of this industry.
Recognition of the Industry’s Contribution: The state government earns crores of rupees annually from brick kilns through royalty, revenue, and GST collections. It is imperative that the government acknowledges this contribution and extends policy-level protection and relief.
Conclusion: Thousands of brick manufacturers in Gujarat are today facing an unprecedented crisis. Their businesses have been devastated, and their workers are without livelihoods. “We urge the Gujarat government and the central government to act swiftly and compassionately to support this vital industry before it collapses under the weight of recurring natural disasters and regulatory burdens,” said Shri Prajapati.
He concluded by reaffirming the Federation’s commitment to working with the government to find sustainable solutions for the long-term survival and growth of Gujarat’s brick industry.