West Asia Conflict Disrupts Over 250 Haryana Pharma, Cosmetic, and Medical Device Manufacturers
The ongoing unrest in West Asia has escalated into a significant economic disruptor with far-reaching global consequences. While much attention has been focused on fluctuations in oil prices and energy markets, the ripple effects are now severely impacting unexpected sectors, including pharmaceuticals, cosmetics, and medical devices. In Haryana, a state with a robust manufacturing base, over 250 companies in these industries are grappling with skyrocketing costs, delayed supplies, and an uncertain future.
Pharmaceutical Industry Faces Severe Price Hikes and Supply Chain Breakdown
The pharmaceutical sector in Haryana, which boasts an annual turnover of approximately Rs 5,000 crore, is experiencing unprecedented challenges. Key raw materials have seen dramatic price increases: paracetamol, once priced at around Rs 250-270 per kg, now costs Rs 600-650 per kg, while antibiotics have surged by 20-30 percent. Surgical items and packaging materials, such as aluminum foil, have also risen by 20-30 percent. Additionally, freight rates for both imports and exports have jumped by 20-30 percent, exacerbating the crisis.
RL Sharma, president of the Haryana Pharmaceutical Manufacturers Association (HPMA), emphasized the industry's global interdependence. "The pharma industry relies heavily on international supply chains. We source raw materials from China, which in turn procures from other countries, and packaging materials from South Korea. Due to air route restrictions caused by the West Asia conflict, materials are not reaching their destinations, creating a major crisis," he explained. Sharma called for government incentives to help the industry cope with rising commodity prices.
Rajiv Malhotra, a local pharma manufacturer, echoed these concerns, stating, "The West Asia unrest has hit us hard, increasing rates for basic items like raw and packaging materials. We are struggling to deliver orders on time due to supply shortages."
Cosmetic Manufacturers Grapple with Petroleum-Based Shortages
The cosmetic industry is equally vulnerable, as many products depend on petroleum-based imports from West Asia. Rohit Gupta, a cosmetic producer, highlighted that key ingredients such as sulphur for hair care and propylene glycol for various formulations are now in short supply, with prices soaring by 70–90 percent. "This shortage, combined with hikes in packaging material costs derived from petroleum, has made cosmetics production precarious," Gupta added, underscoring the double blow faced by manufacturers.
Medical Device Sector Struggles with Rising Input Costs and Freight Issues
Medical device manufacturers are confronting similar hurdles, relying on imported metals, plastics, and specialized components. Sanjay Manocha, a member of the Association of Indian Medical Device Industry (AIMED), reported an unprecedented increase in input costs, including a nearly 50 percent rise in critical plastics for medical disposables and over 20 percent increases in packaging materials and diesel-based power generation. "There is limited availability and near doubling of PNG gas prices, affecting many manufacturers who depend on power generation and process heating," he said.
Manocha urged the Union Government to provide relief measures, such as rebates of 2.5 percent on raw material imports and 5 percent on component imports for three months, to alleviate the strain on the industry.
Broader Implications and Calls for Government Intervention
The crisis underscores the fragility of global supply chains, where unrest in one region can cascade into widespread economic disruption. Industries in Haryana, contributing significantly to the state's economy, are now at a crossroads, with stakeholders demanding proactive government support to navigate these turbulent times. As the West Asia conflict continues, the need for resilient supply strategies and policy interventions becomes increasingly urgent to safeguard the future of these vital sectors.
