Jatish Sheth, Director of Srushti Pharmaceuticals, has stated that the ongoing conflict in West Asia is causing an increase in raw material costs within the pharmaceutical industry.
Speaking to ANI, Sheth explained that pharmaceuticals rely on petrol-based raw materials used in formulations, making them vulnerable to disruptions in petrochemical supply chains. “Pharmaceuticals are affected. Raw materials which are used for manufacturing formulation, they use petrol-based products… If the petrochemical supply is affected, the synthesis raw material will be affected, and in turn, medicines will be affected,” he said.
Although the current impact has not been severe, Sheth warned that a prolonged conflict could result in shortages and higher costs. “So far, it is not affecting badly, but if it goes on for long, it will get affected… Rates of input materials have gone up,” he noted. He added that his company is cautious regarding pricing, stating, “We do not increase the price of the medicines without the permission of the government. As far as pharmaceutical medicines are concerned, there won’t be an increase in the price till the government gives the indication.”
In response to supply chain disruptions caused by the conflict in West Asia, the Government announced on Wednesday a full customs duty exemption on selected critical petrochemical products. The measure aims to protect domestic industries from global supply disruptions and will be in effect until June 30, 2026.
An official statement outlined that the exemption intends to ensure uninterrupted availability of essential petrochemical inputs for domestic manufacturing sectors. This comes amid geopolitical tensions in West Asia that have disrupted global supply chains and increased cost pressures on industries reliant on petrochemical feedstock and intermediates.
The government described the duty exemption as temporary relief designed to stabilise supplies, reduce input costs, and support downstream industries dependent on these raw materials. Sectors expected to benefit include plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments. The move may also indirectly help consumers by moderating prices of final products.
Exempted items include key petrochemical inputs such as anhydrous ammonia, methanol, toluene, styrene, vinyl chloride monomer, monoethylene glycol (MEG), phenol, acetic acid, and purified terephthalic acid (PTA), among others.