Prayagraj: The ongoing conflict between the US, Israel and Iran seems to have left its impact on the healthcare sector.
Although the drug market has not yet experienced a severe shortage of surgical equipment, the industry is under significant pressure due to soaring costs and supply chain disruptions.
With pharma companies fearing a surge in raw material prices, particularly medical-grade polypropylene, a type of plastic used for manufacturing of syringes, traders assume that prices of medicines and surgical equipment are likely to increase 20-25% from next month.
President of Allahabad Chemist & Druggist Association Anil Dubey told TOI that the country’s medical devices and pharma sectors import a large share of raw materials, ingredients and specialised components, including plastics and intermediate chemicals, from Gulf countries. With critical trade routes facing delays, higher freight charges and energy volatility, the cost base for healthcare companies has witnessed an increase. Manufacturers of items like syringes, gloves, catheters and other consumables have already increased by Rs 3 to Rs 10.
“Since the outbreak of the conflict in Feb, the price of the plastic required for medical and surgical equipment has already surged by 50% to 60%. Secondly, petrochemical plants have curtailed production due to gas shortages; consequently, March witnessed an increase of up to Rs 24,000 per metric tonne in cost of raw material,” he said.
“While syringe manufacturing is an energy-intensive process, gas rationing means suppliers have cut industrial gas supplies by 40% to 60%. With pharma companies and factories now compelled to rely on expensive diesel or purchase gas at inflated rates to sustain operations, thereby eroding their profit margins.”
Organising secretary of Prayag Chemist and Druggist Association (Retail), Nikhil Malang, told TOI that prices of nebulisers, BP machines, surgical tapes, glucometers, vaporisers and other surgical products are expected to rise by 10%-20% from April due to shortage of logistics and the blockade of the Strait of Hormuz. He adds, “Sea freight rates have escalated significantly, leading to delays in the import of raw materials, wherein the operational capacity of major airports in the Gulf region has plummeted by up to 80%, resulting in delays of several weeks in the movement of critical components.”Traders at Leader Road market claimed that several manufacturers in India (such as those in the Faridabad hub) have already increased syringe prices by 10% to 25%. If the conflict persists for another 3 to 6 months, hospitals could face a severe shortage of syringes.
