New Delhi, April 9 The government has increased the supply of critical petrochemical feedstock to the pharmaceutical industry to ensure uninterrupted production of essential medicines, as global supply chains remain strained due to the crisis in West Asia.
Prior to the West Asia conflict, the pharmaceutical industry imported a large portion of its petrochemical feedstock, primarily from Kandla, Gujarat, where the logistics chain transported them to factories. However, the war has disrupted these imports, which are now being replaced by Indian refiners, who are adjusting their production lines to provide specialized feedstock to the pharmaceutical sector.
Key inputs such as propylene, ammonia, and methanol are being allocated on a proportional basis to meet industry requirements, said Satyaprakash TL, a Joint Secretary in the Department of Pharmaceuticals, during a press briefing.
Propylene, the most critical feedstock, is being supplied by domestic refiners, including Bharat Petroleum Corp Ltd, and is used to produce intermediates, such as isopropyl alcohol and isobutyl benzene, for medicines like Ibuprofen, he said.
Supplies of ammonia from the fertilizer sector remain stable, while the availability of methanol, which was previously a concern, is being addressed through production from Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals.
The government has also removed customs duty on 40 petrochemical products through a notification on April 1 to reduce input costs, he said.
Despite disruptions in the supply of solvents and active pharmaceutical ingredients, domestic drug prices have largely remained stable. The availability of intermediates used in medicines, such as Metformin and Aspirin, is being closely monitored, along with inputs like morpholine, for which quality control norms have been temporarily relaxed to boost supply, he said.
Constraints in aluminum used for packaging are easing and are expected to normalize within a week, while supplies of LPG and high-speed diesel used in production processes remain adequate.
The government said it will continue to facilitate the supply of critical inputs on a case-by-case basis to ensure the continued availability of essential and life-saving medicines.
The Department of Pharmaceuticals said that despite global volatility, domestic drug prices have largely remained stable, with no significant increase reported so far.