India – Pharmaceutical supply disruptions predicted in India

The pharmaceutical industry in Tamil Nadu foresees the months ahead in 2021 will be critical for the production and supply of pharmaceuticals because the increasing cost of production and the recurring logistic problems are likely to impede the smooth performances of the manufacturing units, according to pharma entrepreneurs in Chennai and Madurai.

The entrepreneurs feel that the last quarter of 2020 and the first quarter of this year were conducive to production and supply chains, but the months ahead, especially October and November, are not much promising for industry’s growth. As far as the MSME units are concerned, it will be hard to overcome the challenging situations, says M Lakshmanan, managing director of Pharmafabrikon in Madurai.

He said raw material price rise is a major setback to production which impacts the supply and availability of medicines in the market. Along with raw materials, prices have gone up for several other materials. Besides, there is hike in freight rates and increase in duty charges. This creates logistic disturbances which will definitely affect the pharmaceutical industry’s performances in Tamil Nadu, says Lakshmanan.

« Most of the raw materials for pharma industry are coming from China. Now the import has come down due to various reasons which affect badly the production of pharmaceuticals. Apart from shortage of active pharmaceutical ingredients, the entrepreneurs are running short of packaging materials like PVC film rolls, aluminium foils, plastic & polymers, glass, paper, and paper boards, which are coming from China on a reduced rate. Since Covid 19 has now started again increasing in other Asian countries like Thailand, Indonesia and Srilanka, demand for the Chinese raw materials has increased across countries in the Asian continent, » says Lakshmanan…