Government Measures to Support Pharmaceutical Industry Amidst West Asia Crisis

The government has implemented measures to ensure the uninterrupted production of essential medicines by enhancing the supply of critical petrochemical feedstock to the pharmaceutical industry. This action comes as global supply chains face disruptions due to the ongoing crisis in West Asia.

Supply Chain Adjustments

• Prior to the West Asia conflict, the pharmaceutical industry relied heavily on imported petrochemical feedstock, primarily through Kandla, Gujarat.
• Current disruptions have led Indian refiners to adjust production lines to supply specialized feedstock to the pharma sector.

Key Inputs and Sources

• Propylene: Supplied by domestic refiners like Bharat Petroleum Corp Ltd, used to produce intermediates such as isopropyl alcohol and isobutyl benzene for medicines like Ibuprofen.
• Ammonia: Stable supplies from the fertilizer sector.
• Methanol: Previous concerns addressed through production by Assam Petrochemicals and Gujarat Narmada Valley Fertilisers & Chemicals.

Additional Measures

• The government has removed customs duty on 40 petrochemical products to reduce input costs as of an April 1 notification.
• Temporary relaxation of quality control norms for inputs like morpholine to enhance supply.

Monitoring and Stability

• Close monitoring of intermediates for medicines such as Metformin and Aspirin.
• Aluminium supply for packaging is stabilizing and expected to normalize soon.
• LPG and high-speed diesel supplies for production remain adequate.
• Despite global supply disruptions, domestic drug prices have remained largely stable with no significant increase reported.

The government commits to facilitating the supply of critical inputs on a case-by-case basis to ensure the availability of essential and life-saving medicines.