Ingredients News - Drug makers hit by PSUs’ increase in prices of chemicals used in manufacturing APIs


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Drug makers hit by PSUs’ increase in prices of chemicals used in manufacturing APIs

Laxmi Yadav, Mumbai June 22 , 2021

Drug makers have been hit hard by public sector undertakings’ increase in prices of chemicals needed for manufacture of active pharmaceutical ingredients (APIs) for the past few months.

The price of acetic acid manufactured by Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) rose by 290.99 per cent to Rs 118 a kg in May 2021 from Rs 30.18 per kg in October 2020.

Dimethyl formamide, manufactured by Rashtriya Chemicals and Fertilizers (RCF) has also witnessed 211.53 per cent rise in per kg prices over the last eight months. The price of dimethyl formamide stood at Rs 180 a kg in May 2021 from Rs 57.78 per kg in October 2020.

The price of ethyl acetate manufactured by GNFC has increased by 125.42 per cent to Rs 133 a kg in May 2021 from Rs 59 per kg in October 2020. Similarly, prices of aniline also manufactured by GNFC witnessed an upward trend since October 2020. It went up to Rs 165 a kg in May 2021 from Rs 75.37 a kg in October.

Manufactured by Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL), benezene has also seen 117.01 per cent rise in prices since the last eight months. The price of the chemical has zoomed to Rs 74.63 a kg in May 2021 from Rs 34.39 a kg in October 2020.

The price of phenol manufactured by Hindustan Organic Chemicals (HOC) hiked by 99.06 per cent to Rs 106 a kg in May 2021 from Rs 53.25 a kg in October 2020. The price of formic acid 85% produced by GNFC went up by 74.76 per cent to Rs 57 a kg in May 2021 from Rs 33.76 a kg in October 2020. Toluene manufactured by BPCL has seen 58.10 per cent rise in per kg price till May 2021. It rose to Rs 60 a kg in May 2021 from Rs 37.95 a kg in October 2020. The price of acetone manufactured by HOC has increased by 48.64 per cent to Rs 109 a kg in May 2021 from Rs 73.33 a kg in October last year.

Expressing concern over PSUs’ increase in prices of chemicals needed for manufacture of APIs, drug manufacturers have appealed to the Department of Pharmaceuticals (DoP) to take it up with Union minister for chemicals & fertilizers Sadananda Gowda to advise the PSUs producing these chemicals not to raise the prices, as it ultimately impacts prices of raw materials required for producing lifesaving drugs.

Indian Drug Manufacturers’ Association (IDMA) and Bulk Drug Manufacturers Association of India (BDMAI) have made a joint submission to DoP secretary S Aparna in this regard.

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