Supply Chain Disruptions Threaten Paracetamol, Metformin and Other Essentials
March 18, 2026: The ongoing conflict in Iran is sending shockwaves through India’s pharmaceutical sector, affecting the availability of key medicines such as Paracetamol, Metformin, Amoxicillin, and Azithromycin. The Federation of Pharma Entrepreneurs (FOPE) has warned the government that raw material shortages and rising costs could soon translate into higher prices for patients, even though stocks at retail outlets remain stable for now. Wholesale medicine prices have already risen 10–15%, raising concerns about affordability for essential treatments.
FOPE highlighted that the cost of Active Pharmaceutical Ingredients (APIs), chemical solvents, and packaging materials has surged 20–60% over the past week, with some suppliers reportedly creating artificial shortages. India imports over 70% of its APIs from China, and maritime transport routes, including the Strait of Hormuz and Suez Canal, have been disrupted by the Iran conflict. Shipping delays that previously took 20 days are now taking 45–50 days, with container costs tripling to quintuple, adding pressure on domestic production.
Experts note that India’s “just-in-time” inventory system, while efficient under normal conditions, leaves manufacturers highly vulnerable during disruptions. FOPE has urged authorities, including the NPPA, to allow temporary price adjustments under the Drug Price Control Order to offset rising input costs. Without intervention, wholesale medicine prices could climb another 10–15%, potentially increasing the cost of daily medicines from Rs 50 to Rs 60–65, affecting millions of patients with chronic conditions such as diabetes, hypertension, and asthma.