Beijing covid curbs may choke API supplies, fear Himachal pharma firms

Ambika Sharma

Solan, December 21

Rising Covid cases in China may once again trigger a shortage of active pharmaceutical ingredients (APIs) in India, which imports over 65 per cent of APIs from the neighbouring nation.

Though there is no visible impact on API prices or supplies in the Asia’s pharmaceutical hub of Baddi-Barotiwala-Nalagarh (BBN) as well as the Paonta Sahib-Kala Amb belt, there is a sense of fear in the industry. Reason: The earlier Covid waves had severely crippled the manufacturing operations amid curtailed imports from China.

Relying on imports

• Indian pharmaceutical industry imports more than 65% of APIs from China
• Himachal units fear impact of Covid curbs in China to be visible in about two weeks
• Units have already started bulk purchase, which may lead to artificial shortage

“The manufacturers have already started procuring whatever supplies are available in the market. Traders are again trying to exploit the situation. Some commonly used products have become dearer by 15-20 per cent,” says a unit owner from Baddi.

The manufacturers opine the impact of curbs in China would be visible in the next about a fortnight. There is, however, a tendency of hoarding, which leads to artificial shortage, they say.

To cut dependence on China, the Centre has approved a bulk drug park in the state, but it will take at least three years for API producers to start manufacturing here.

BK Sikri, chairman, Federation of Pharmaceutical Entrepreneurs, said, “There is no reason to panic as Indian API producers, who invested under the production-linked incentive scheme, are now manufacturing 35 of the 53 APIs for which India has 90 per cent import dependence.” He ruled out any immediate shortage of APIs and other key ingredients and said they were closely monitoring the situation.

The state has about 650 pharmaceutical units, including 15 approved by the US Food and Drug Administration and 180 by the WHO.