Will condom prices increase?Image Credit source: GettyImages
The energy crisis caused by the ongoing war in Iran and closure of the Strait of Hormuz has now started affecting Indians too, because the government has announced an increase in fuel prices. Now, due to disruptions in the supply chain, there may be shortage of goods in sectors other than the energy sector and its impact may reach the bedrooms of Indians as well.
India’s well-known pharmaceutical company Mankind Pharma has indicated that if the ongoing conflict in the Middle East continues and oil prices remain high, then condom prices may increase. CEO Sheetal Arora told Reuters that the Manforce condom maker has enough stock to meet demand for the next few months. However, he also warned that if oil prices remain high, Mankind may ultimately have to pass on some of the increased costs to customers.
How is the conflict in the Middle East connected to condom prices?
Oil is a significant component of costs for condom companies, as they rely on petroleum-based raw materials for chemicals, lubricants, and packaging, even though condoms are primarily made from natural latex. The increasing tension in the Middle East has shaken markets around the world. Due to supply disruptions, oil prices have increased by almost 50 percent to more than $100 per barrel since the war started on February 28.
Manforce which is considered to be one of the most affordable condom brands in India usually retails for around Rs 100-150 for a pack of 10 condoms. Mankind Pharma is not the only company struggling with the problem of rising costs. Last month, Malaysian company Carex, which supplies condoms to brands like Durex, also announced a price increase of up to 30 percent due to supply chain disruptions caused by tensions in the Middle East.
Immediately after the conflict began in February, Carex has seen significant increases in costs across its supply-chain. The cost of everything from synthetic rubber and nitrile used in making condoms to packaging materials and lubricants like aluminum foil and silicone oil has increased.
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