HYDERABAD: The ongoing conflict in West Asia has led to a sharp rise in the prices of raw materials used in medicine manufacturing, with costs increasing by 50% to 180%, raising concerns over a possible increase in medicine prices in Telangana.
According to sources in the Bulk Drug Manufacturers Association of India, raw material prices have surged due to steep hikes by suppliers of chemicals and solvents used in pharmaceutical production.
Active Pharmaceutical Ingredient (API) manufacturers are currently absorbing part of the burden, and medicine prices may not immediately rise in the same proportion.
A drug manufacturer said methanol, which earlier cost Rs 35 per kg, is now being sold at over Rs 100 per kg. Pharmaceutical companies are reportedly planning to increase the prices of several medicines by 20% to 100% if the trend continues. Commonly used drugs such as paracetamol, antibiotics, painkillers, insulin and steroid medicines are likely to become costlier in fresh stock. The increase is expected to burden patients, particularly those suffering from chronic illnesses, fever, infections, diabetes and cardiovascular diseases.
Anindith Reddy, co-founder and managing director of Wadi Surgicals Pvt Ltd, said nitrile butadiene rubber (NBR), a key raw material used in manufacturing surgical and examination gloves, has become 110% costlier, while availability has declined, resulting in a 70% rise in manufacturing costs.
He added that LPG used in the manufacturing process has also become costlier, which could lead to glove prices doubling once existing stocks are exhausted. He said rising input costs may also force India to increase imports from Malaysia, Taiwan, Vietnam and China.
The Bulk Drug Manufacturers Association of India (BDMAI) said the Centre has waived customs duty on 40 chemicals and solvents used in pharmaceutical manufacturing. Manufacturers have urged government intervention.