New Delhi: India’s medical devices industry is also facing the brunt of the Iran war with a looming shortage of polypropylene (PP), a thermoplastic polymer used as raw material for syringes, IV bags, catheter components, blood bags, and surgical drapes, among others.
The price of PP has risen sharply in the last one month, said industry experts.
“PP prices have gone up by over Rs 55 per kg since December,” said an expert. “In March itself, we have seen an unprecedented increase. Even in Covid times, we have never witnessed this price gouging.”
Prices of plastic raw materials have surged 25-35% in the last 10-12 days, which will adversely hit small and medium enterprises that make up about 90% of the medical devices sector, said Himanshu Baid, managing director, Polymedicure, an exporter of consumables for infusion therapy.
India imports a large share of its advanced medical devices, diagnostic equipment, and critical components, most of which move through international logistics corridors linked to the Middle East. The ongoing war has started to cause major disruptions to global medical device supply chains, threatening healthcare delivery.
Back home, the industry is also grappling with a deepening gas supply crisis. Gas rationing by Adani Total Gas is impacting producers of critical devices like syringes.
The medical devices industry will receive only up to 40% of daily contracted quantity. Any offtake exceeding 40% will be considered “excess gas” and will be charged more, Adani Total Gas said in a letter to companies.
The gas shortages may lead to industrial slowdown and switching to alternate fuels like diesel which will not only be expensive but will also result in worsening of air quality,” said Rajiv Nath, forum co-ordinator, AiMed.
“Adani PNG gas prices have nearly doubled, severely impacting power self-generation costs for manufacturing units. These steep hikes directly erode wafer thin margins in producing highly competitive essential disposables like syringes, IV sets, and catheters.”
“Any sustained disruption to shipping routes, air cargo capacity, or energy markets could lead to higher freight costs, longer lead times, and pressure on hospital procurement budgets,” said Pavan Choudary, chairman, MTaI.
The industry has now approached the Ministry of Commerce, Department of Pharmaceuticals and Ministry of Health and Family Welfare urging immediate government interventions such as expedited customs clearances for alternative routes, subsidies on critical inputs, and anti-price gouging measures and directives to CONCOR and shipping lines for not increasing freight costs.
