Pharmexcil Urges Allocation of Key Chemicals to Prevent Drug Shortages

India's Pharmaceuticals Export Promotion Council (Pharmexcil) has urged the government to allocate critical petrochemical feedstocks like propylene, methanol, ammonia, and butane to solvent and API manufacturers. Inventories are critically low due to supply disruptions from the West Asia conflict, threatening severe drug shortages. Pharmexcil Chairman Namit Joshi warned that without swift intervention, the pharmaceutical sector faces major disruptions. The industry seeks urgent government support to prioritize feedstock supply and ensure uninterrupted medicine production.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has issued a critical appeal to the Indian government, requesting the urgent allocation of essential petrochemical feedstocks to solvent manufacturers and active pharmaceutical ingredient (API) producers. Key chemicals such as propylene, methanol, ammonia, and butane are facing critically low inventory levels, primarily due to severe supply chain disruptions stemming from the ongoing West Asia conflict. This precarious situation raises significant concerns about potential widespread drug shortages across the pharmaceutical sector.Pharmexcil Chairman Namit Joshi highlighted the gravity of the situation, stating that a prolonged inability of solvent manufacturers to restore supplies could lead to serious disruptions in medicine production. Solvents, derived from these petrochemical feedstocks, are indispensable for the manufacturing process of APIs and pharmaceutical intermediates. Industry experts corroborate these concerns, noting that API manufacturers are already struggling to source necessary solvents due to the Middle East crisis impacting chemical producers.India’s pharmaceutical industry has a substantial monthly requirement of approximately 55,000 metric tons of these key starting materials, with 80% met domestically and 20% through imports. However, the geopolitical tensions have severely tightened global supply availability and hindered logistics, exacerbating the scarcity. Stakeholders are now pressing the government to prioritize the diversion of available petrochemical supplies specifically for solvent manufacturers catering to the pharmaceutical sector. While government officials are reportedly engaged in discussions to evaluate measures, Pharmexcil emphasizes the immediate need for intervention, noting that solvent producers' inventories are almost negligible, shifting the government's focus from earlier LPG supply concerns to critical pharmaceutical derivatives. Timely policy action is crucial to safeguard India’s pharmaceutical output and maintain medicine availability both domestically and for export.