The government is evaluating whether it needs to implement the Essential Commodities Act to control prices of bulk drugs or active pharmaceutical ingredients (APIs) and curb hoarding amid the changing situation in West Asia. People with knowledge of the matter said that the Pharmaceuticals Department is holding meetings with industry officials to take stock of the situation. Joshi, named chairman of Pharmexil (Pharmaceuticals Export Promotion Council of India), confirmed, “The government is planning to implement the Essential Commodities Act for our industry to prevent black marketing and hoarding. We are waiting for the final decision. Hopefully the supply chain will be restored soon.”
Increase in raw material prices
Industry experts said the ongoing global conflicts have severely disrupted the supply of critical pharmaceutical raw materials, leading to an unprecedented increase in prices of 200-300 per cent. An official said the shortage of PNG and shortage of containers is putting further pressure on distribution. The government is holding detailed discussions with the industry and is ready to announce important decisions for the pharma industry. Joshi further said that we are holding meetings with the industry and the Ministry of Petroleum and Natural Gas (MoPNG). This meeting was organized under the aegis of the Pharmaceuticals Department of the Ministry of Chemicals and Fertilizers. Inter-ministerial discussions were held, where concerned stakeholders presented their requirements before MoPNG. We have compiled these requirements and shared them with MoPNG.
Their prices increased
Industry officials say that amid the ongoing war, there has been a huge surge in the prices of key active pharmaceutical ingredients (APIs) and solvents in the last few days, which has dealt them another blow. In the last few weeks alone, the prices of APIs have increased by an average of 30-35 percent. Glycerine prices have seen the sharpest jump (64 per cent), while paracetamol has become costlier by 25 per cent and ciprofloxacin by 30 per cent. Packaging material has also not remained untouched by this. For example, prices of polyvinyl chloride and aluminum foil have increased by 40 percent.
Medicines have become expensive
Its far-reaching effects extend far beyond finished medicines. Glycerine, propylene glycol and solvents—which are essential for the manufacturing of almost every liquid medicine, from syrups and oral drops to sterile medicines—have all become very expensive. Besides, major intermediate chemicals used in the manufacturing chain have also become expensive. Abhay Srivastava, senior president of operations at Mankind Pharma, said that due to supply cuts and rapid increase in prices, both pharma companies and packaging suppliers are under increasing pressure.
There is a demand for these discounts
The industry is demanding relaxations like those given during the Covid-19 pandemic. Under those exemptions, manufacturing companies were allowed to operate by joining the ‘essential items’ list. This arrangement helped in saving production from major disruptions in the supply chain. Earlier, Pharmexcil had also sought subsidy on freight and logistics support to handle rising expenses. An expert said that any disruption in manufacturing could have far-reaching consequences. This will not only affect the patients of the country but will also affect the international pharma supply chains which are heavily dependent on Indian production.