NEW DELHI: India may face an imminent shortage of essential medicines such as paracetamol, amoxicillin, metformin and azithromycin if the West Asia conflict continues, warned one of the largest national pharmaceutical manufacturers’ associations.
The Federation of Pharma Entrepreneurs (FOPE), representing large, medium and hundreds of MSME formulation units, has urged urgent government intervention as prices surge due to an artificial scarcity of active pharmaceutical ingredients (APIs), PVC, and packaging materials. The association has written to the Department of Pharmaceuticals, Ministry of Chemicals and Fertilisers, highlighting an unprecedented crisis that threatens both the survival of pharmaceutical units and the continuous supply of essential medicines.
FOPE emphasised that Micro, Small and Medium Enterprises (MSMEs), which cater to a significant portion of the domestic market and government supplies, may be forced to halt operations due to the unavailability of raw and packaging materials. This could lead to a shortage of affordable essential medicines in retail pharmacies and hospitals.
“If the present situation continues, it may lead to supply constraints in the manufacturing of certain widely used essential medicines produced in large volumes by Indian pharmaceutical companies. These include paracetamol, amoxicillin, metformin, and azithromycin, which form an important part of India’s public health system,” said FOPE’s national president, Harish K Jain, in a letter to Secretary, Department of Pharmaceuticals, Manoj Joshi.
“Any disruption in the manufacturing ecosystem could therefore have wider implications for medicine availability and public health,” the letter added.
The association warned that continuing input shortages could prevent firms from fulfilling government tenders due to the disparity between fixed tender prices and skyrocketing input costs, potentially resulting in permanent closure of units and large-scale job losses in the MSME sector.
FOPE highlighted that in just eight to nine days, the pharmaceutical formulation sector has been hit by a catastrophic surge in the prices of critical inputs, particularly APIs, which have risen by 20–60 per cent.
Speaking to TNIE, Vinod Kalani, Co-chairman of FOPE, said: “The government should convene a meeting with all stakeholder associations to understand the ground reality regarding all input materials for the pharmaceutical formulation and API industries, as well as the availability of medicines. A thoughtful, practical approach is needed at such crucial times.”
The letter, dated March 13, also pointed out concerns over irregular supplies of key solvents and chemical intermediates essential for pharmaceutical manufacturing. It noted that the prices of PVC compounds, bottles, films, Alu-Alu and foils have escalated sharply, making existing production contracts financially unviable.
“In addition, there are noticeable increases in the prices of certain paper-based packaging inputs widely used for cartons, labels and outer packaging of medicines. This broad-based price rise across multiple segments is placing further financial strain on formulation manufacturers,” it stated.
The association accused some entities of creating artificial scarcity to exploit formulation units, forcing many MSMEs to slow or halt operations.
Under the Drugs (Prices Control) Order, 2013, companies operate within tightly regulated price frameworks, limiting their ability to absorb sudden cost increases. As a result, several units are struggling to maintain production schedules and meet supply commitments.
FOPE also noted that logistics and freight costs, particularly for exports, have doubled on certain routes, further burdening already strained manufacturers.
The association urged immediate government action under the Essential Commodities Act and other relevant frameworks, including price stabilisation, mandatory reporting of stock levels by API manufacturers and packaging suppliers, and temporary “force majeure” price adjustments to offset extraordinary input cost rises.
FOPE called for an urgent joint consultation involving API manufacturers, importers of pharmaceutical raw materials, packaging suppliers, formulation manufacturers, and industry associations. “Such a coordinated dialogue would help identify the root causes of current disruptions and enable timely corrective measures to stabilise the market,” the letter said.
“The pharmaceutical industry is the pharmacy of the world, but its foundation, the MSME sector, is crumbling. We seek immediate and aggressive intervention to restore market stability and ensure that the citizens of India are not deprived of lifesaving medicines,” it concluded