Iran conflict may raise medicine and surgical supply prices in India

New Delhi: The impact of the ongoing tensions and conflict in West Asia has now begun to manifest in India's pharmaceutical market as well. Driven by the sharp rise in raw material prices, apprehensions are growing that the cost of a wide range of products—from fever medications and painkillers to surgical equipment—is set to increase.

According to industry traders, the prices of medicines and surgical items could witness a hike of 20 to 25 percent. This looming prospect has created a stir within the pharmaceutical market.

Rise in Raw Material Prices

Lakshya Khanna, a manufacturer and exporter of pharmaceuticals, explains that the prices of several essential raw materials used in drug manufacturing—such as chemical components, plastics, and aluminum—have surged in recent days. This is having a direct impact on the operational costs incurred by pharmaceutical companies.

In fact, plastics and aluminum are extensively utilized not only in the manufacturing of tablets and syrups but also in their packaging. As prices climb, companies' production costs are rising, and the effect of this is now beginning to reflect in the retail prices of medicines.

Raw Material Costs for Paracetamol Jump 47%

Sharing a market report, Lakshya noted that the cost of raw materials for Paracetamol—a widely used over-the-counter medication—has surged by approximately 47 percent. Painkillers such as Diclofenac have seen a 54 percent increase, while Diclofenac Potassium has recorded a 33 percent rise. Furthermore, antibiotics have not remained immune to this trend either.

The price of Amoxicillin Trihydrate has risen by 45 percent, and that of Ciprofloxacin has increased by nearly 62 percent. Meanwhile, pharmaceutical trader Ashish Grover stated that, alongside medicines, prices for surgical items are also expected to rise by 20 to 25 percent.

'Raw Material and Packaging Costs Have Risen'

Pharmaceutical trader Ashish Grover explains that prices for everything—from medicines to surgical items—are set to increase. This is because the costs associated with everything from raw materials to the packaging of medicines have gone up. Consequently, the impact of this rise may be observed in new consignments of medicines. Ashish noted that, in the interim, some traders have already hiked the rates for both medicines and surgical items. This practice is absolutely unacceptable; the prices for medicines and surgical items belonging to older consignments must remain unchanged.