Medicine prices in India expected to rise

Medicine prices in India are expected to rise sharply after a 30% surge in raw material costs, driven by a scarcity of container ships amid the Iran conflict, according to a report by The Economic Times.
Industry officials stated that vessel shortages have restricted the movement of active pharmaceutical ingredients (APIs) from China, which remains the largest supplier to Indian manufacturers. This disruption is expected to impact local manufacturing and push up retail prices, as producers are forced to pass the higher costs to consumers.
According to data reported by ET, the prices of certain key raw materials have risen by more than 60%. The price of glycerine has jumped 64% since December, while paracetamol prices have increased by 26%.
An industry official noted that importers, pressured by surging raw material costs, are passing the burden directly to large pharmaceutical companies.
“With APIs up, solvents spiking 20% to 30%, and every shipping line charging a premium, importers have no room to absorb,” the official was quoted as saying by ET.
Experts warn the scenario may worsen if the conflict is prolonged. The industry has urged the government to allow an increase in drug prices to offset the elevated input costs.
Industry experts noted that pharmaceutical companies operate on just-in-time inventory management to ensure production efficiency, keeping stock levels at an absolute minimum.
The logistics crisis is also threatening international supply chains, as markets including the United Arab Emirates, Saudi Arabia, and Oman are highly dependent on India for affordable medicines.