Pharma Feedstock Supply Secured Amid West Asia Crisis

New Delhi, Apr 9 (PTI) The government has stepped up supplies 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 bulk of its petrochemical feedstock, mostly in Kandla, Gujarat, from where the logistics chain took them to factories. The war, however, has disrupted those imports, which are now being substituted by Indian refiners, tweaking production lines to make available specialised feedstock to the pharma sector.

Key inputs such as propylene, ammonia and methanol are being allocated on a pro-rata basis to meet industry requirements, said Satyaprakash TL, Joint Secretary in the Department of Pharmaceutical, at a news briefing.

Propylene, the most critical feedstock, is being supplied from domestic refiners, including Bharat Petroleum Corp Ltd, and used to produce intermediates, such as isopropyl alcohol and isobutyl benzene, for medicines like Ibuprofen, he said.

Ammonia supplies from the fertiliser sector remain stable, while methanol availability, earlier a concern, is being addressed through output from Assam Petrochemicals and Gujarat Narmada Valley Fertilisers & Chemicals.


The government has also removed customs duty on 40 petrochemical products through an April 1 notification to ease input costs, he said.

Despite disruptions to global supplies of solvents and active pharmaceutical ingredients, domestic drug prices have remained largely stable. Availability of intermediates used in medicines, such as Metformin and Aspirin, is being closely monitored, alongside inputs like morpholine, for which quality control norms have been temporarily relaxed to boost supply, he said.

Constraints in aluminium used for packaging are easing and expected to normalise 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 supplies 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 remained largely stable, with no significant increase reported so far.