Iran war hits pharma industry hard in Hyderabad
HYDERABAD: The ongoing conflict involving Iran, Israel and the United States is impacting industries across India, with the pharmaceutical sector facing significant pressure.
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) said the industry has already taken a hit of around ₹5,000 crore since the war began. Industry experts said both small and large units are affected.
Raw material costs surge amid supply disruptions
The near closure of the Strait of Hormuz in the Persian Gulf, a key global trade route, has disrupted the supply of critical raw materials from West Asia. This has affected both imports and exports.
Pharmaceutical manufacturing depends heavily on petrochemical-based inputs such as polymers, solvents and active pharmaceutical ingredients. With crude oil supplies impacted, production of petrochemicals and related materials has declined.
Industry representatives said domestic prices of these inputs have risen by 20–30 per cent. Shipping has also become costlier, with surcharges increasing from $4,000 to $8,000 per vessel.
Cold chain logistics for medicines have also been affected, raising concerns over supply stability.
Impact spreads to other sectors, including agriculture
The disruption is not limited to pharmaceuticals. Polymer-based industries, including those producing PVC pipes and electrical components, are also affected.
Raw material prices for agricultural equipment such as drip irrigation systems and pipes have risen by up to 20 per cent. Gas-dependent sectors such as glass and aluminium manufacturing are also under pressure.
Experts said companies are currently absorbing the increased costs, but if the conflict continues for another 15–30 days, the burden may be passed on to consumers.
Concerns over price rise in medicines and diagnostics
There are concerns that prices of essential medicines, including antibiotics, fever and pain drugs, and vitamins, may increase.
Hospitals and diagnostic centres are also affected due to reduced supply of helium gas, largely imported from Qatar. Helium is essential for cooling magnets in MRI and CT scan machines.
Industry representatives said current helium reserves may last only about 15 days. A prolonged disruption could lead to higher scanning costs.
Exports of medicines to West Asian countries such as Saudi Arabia, the United Arab Emirates, Qatar, Oman, Yemen and Kuwait have also slowed, adding to the strain.
Sudhir Reddy, president of the Telangana Industries Federation, said, “The war has severely impacted polymer-based industries. Raw material prices have risen by up to 20 per cent. While the effect has not yet reached consumers, prices may increase if the situation continues.”
