The rise in raw material costs cannot immediately be passed on to patients as prices of many medicines in India are regulated by the National Pharmaceutical Pricing Authority.
The ongoing conflict between Iran and US-Israel in West Asia is now affecting India’s pharmaceutical supply chain – pushing up the cost of raw materials used in drug manufacturing while raising concerns in the industry on further price volatility.
Industry executives told News18 that the prices of key starting materials (KSM) and active pharmaceutical ingredients (API) have started rising.
Over the past week, the cost of several inputs has increased by 5 to 100 percent, driven by currency fluctuations, higher petroleum-linked costs, and emerging disruptions in global shipping. Officials warned of possible shortages if the war stretches for a long period.
“There could be shortage of medicines as traders aren’t taking any orders for raw materials,” Sandeep Arora, chief executive officer at Baddi-based firm Ultra Drugs, told News18.
He added: “Prices of solvent have increased genuinely but also, traders and suppliers are trying to take advantage of the war situation by pushing the price rise further.”
