Pressure on companies to increase API for drug production by 140%

MUMBAI: The rise in prices of raw materials used in the manufacture of some essential medicines, also known as active pharmaceutical ingredients (APIs), has put pressure on the pharma industry by up to 150 per cent from previous levels. Despite the Prime Minister's slogan of self-reliance during Corona's tenure, India's dependence on imported goods has not diminished.

Disruption in the supply of APIs imported from China has led to an increase in its prices. Supply disruptions could also lead to shortages of essential medicines, pharma industry circles said.

The massive rise in the price of APIs is again raising questions about India's dependence on China. India imports 60 per cent of its total API requirements from China. However, some drugs have to be imported from China with up to 50 per cent raw material.

As many life-saving drugs in the country are coming under the price control mechanism, companies cannot increase their prices and therefore the increase in raw material prices has to be borne by the drug manufacturers.

In such a scenario, companies have reduced production of high-cost drugs which do not seem to be turning to high-margin drugs, the sources added.

Patients are also being forced to buy some expensive drugs due to shortage of medicines. Excessive reliance on China in terms of key raw materials for the production of medicines such as diabetes, heart disease, vitamins is becoming a concern for the industry.