The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged the government to ensure the allocation of critical petrochemical feedstocks such as propylene, methanol, ammonia, and butane to solvent manufacturers and active pharmaceutical ingredient (API) producers. According to the industry body, inventories of these essential raw materials have dropped to critically low levels due to supply disruptions caused by the ongoing West Asia conflict, raising concerns about potential shortages in pharmaceutical production.
Solvent Shortages Threaten Pharma Manufacturing
Pharmexcil Chairman Namit Joshi warned that if solvent manufacturers are unable to restore supplies quickly, the pharmaceutical sector could face serious disruptions. Solvents derived from petrochemical feedstocks are essential for the production of APIs and pharmaceutical intermediates. Any prolonged shortage could therefore impact the manufacturing of several important medicines. “If solvent producers fail to reinstate supplies, the market could face shortages of medicines, as these chemicals play a crucial role across the pharma manufacturing chain,” Joshi said.
API Manufacturers Struggle to Secure Supplies
Industry experts note that API manufacturers are already experiencing difficulties in sourcing solvents, as chemical producers grapple with disrupted supply chains. “The pharma industry, particularly API producers, is facing a major challenge in procuring solvents. Manufacturers say their supply chains have been affected due to the Middle East crisis,” an industry expert said. These supply constraints have increased uncertainty across the pharmaceutical supply chain, prompting industry leaders to seek urgent government support.
Domestic Supply Meets Majority of Demand
India’s pharmaceutical sector consumes large quantities of petrochemical-based inputs each month. Industry estimates indicate that the consolidated monthly requirement of key starting materials—propylene, methanol, ammonia, and butane—stands at around 55,000 metric tons. Currently, about 80 percent of this demand is met through domestic production, while the remaining 20 percent is fulfilled through imports. However, the geopolitical crisis has tightened supply availability and disrupted logistics, thereby affecting the availability of these essential chemicals.
Industry Seeks Government Intervention
Given the emerging shortage, industry stakeholders are urging the government to prioritize allocations of these petrochemical feedstocks for solvent manufacturers serving the pharmaceutical sector. Officials have reportedly been in close discussions with industry representatives to evaluate possible measures. One option under consideration is diverting part of the petrochemical supply toward solvent producers, which would subsequently supply API manufacturers.
Ensuring Stable Supply of Medicines
Joshi highlighted that the government’s immediate focus earlier was on ensuring adequate LPG availability, but the situation has now become critical for other petrochemical derivatives used in pharmaceuticals. “The government initially focused on securing LPG supplies and later planned to address other sectors. However, solvent producers now have almost negligible inventory levels. Therefore, it is essential for the government to divert petrochemical feedstocks to solvent manufacturers so they can support API production,” Joshi said. As reported by asiatoday.co, as geopolitical tensions continue to impact global supply chains, timely policy intervention will be crucial to safeguard India’s pharmaceutical production and ensure uninterrupted availability of medicines in domestic and export markets.
