A severe shortage of propane, a critical fuel used for powering reactors and generating steam, has disrupted pharmaceutical manufacturing across Gujarat and key industrial clusters in Maharashtra, Telangana, and Andhra Pradesh. As a result, several pharmaceutical units have scaled down or temporarily suspended operations. This disruption is already affecting the production of essential medicines, including fever treatments, nutritional supplements, and hormone-based therapies.
Boiler-Dependent Operations Hit Hard
The crisis has significantly impacted boiler-dependent processes, which form the backbone of pharmaceutical manufacturing. Consequently, production output is declining, and companies are increasingly relying on existing inventories. However, with fuel supply renegotiations underway, concerns are mounting over potential medicine shortages in the coming weeks.
India’s API Manufacturing at Risk
India, a global hub for Active Pharmaceutical Ingredient (API) production, plays a crucial role in supplying medicines worldwide. The country’s large-scale facilities manufacture a wide range of drugs, including pain relievers, antibiotics, anti-inflammatory medicines, diabetes treatments, and essential micronutrients. However, the heavy reliance on propane for energy-intensive operations has exposed a critical vulnerability. Industry experts warn that nearly 200 pharmaceutical units could face shutdown within the next 7 to 10 days if the situation persists.
Supply Chain Disruptions and Rising Costs
The ongoing energy crisis has been further aggravated by disruptions in LNG import routes, leading to acute supply shortages and a sharp rise in gas prices. As a result, manufacturers are struggling to maintain operations amid rising input costs and shrinking margins. Experts caution that prolonged disruptions could delay production cycles, increase drug prices, and weaken India’s position in global pharmaceutical supply chains. Moreover, the impact may extend beyond medicines to essential medical supplies such as syringes and gloves.
LPG Dependence Puts Critical Drug Production at Stake
Bulk drug manufacturers have raised concerns over their dependence on LPG for key processes such as sterilization, granulation, and boiler operations. Importantly, any prolonged shortage could severely disrupt the production of life-saving drugs, particularly injectable medicines that require stringent manufacturing conditions.
Industry Seeks Government Intervention
In response to the crisis, pharmaceutical companies have urged the government to introduce relief measures. These include granting exemptions similar to those provided during the pandemic, allowing continued operations under the essential commodities category. Industry stakeholders stress the need for immediate policy support to stabilize fuel supply and ensure uninterrupted production.
Implications for Healthcare and Global Supply
If the disruption continues, experts warn of widespread implications for both domestic healthcare systems and global drug availability. As reported by moneycontrol.com, the crisis highlights the urgent need for energy diversification and supply chain resilience within India’s pharmaceutical sector to safeguard against future disruptions.
