China raises raw material prices by 20%

Mumbai, Ta. 22 September 2020, Tuesday

China has hiked the price of KSM, the country's main ingredient in pharmaceuticals, by 15 to 20 per cent. However, prices of basic raw materials (Active Pharmaceutical Ingredients (APIs)) have not been significantly increased, local pharma industry sources said.

India's pharma industry imports large quantities of APIs and KSMs for the production of life-saving drugs, antibodies and steroids.

The rise in prices will not only increase the cost of domestic pharmaceutical production, but also China's efforts to block India's efforts to become self-sufficient in the pharmaceutical industry.

An increase in KSM prices could not only increase the cost behind domestic production of APIs, but also India's APIs against Chinese products could not survive in terms of prices in the world market, a pharma industry source said.

The government has recently announced some incentive schemes for home production of some APIs.

The schemes have been announced as part of a move to reduce its reliance on China after the border dispute and move forward with a self-reliant India program.