35 C
New Delhi
September 28, 2020
KhabriBaba
Business

40% rise in prices of paracetamol in India as factories close in China

Reading Time: 3 minutes
  • Azithromycin, an antibiotic used in bacterial infections, rose by 70%
  • India imports up to 80% of pharma ingredients from China
  • Production in China stopped due to coronavirus, so imports into India were affected

 

The impact of increasing coronavirus infection is now visible in India along with China. According to a Bloomberg report, the price of paracetamol drugs in India increased by 40% due to supply disruptions from China. Zydus Cadila Chairman Pankaj R Patel says that prices of azithromycin, an antibiotic used to treat bacterial infections, have gone up by 70%.

The price of paracetamol drugs in India increased by 40% due

Patel said that if supply does not start from China by the first week of next month, then there may be a shortage of ingredients in the entire pharma industry.

China’s dependence over three years rose 23%

India’s dependence on China for the import of active pharmaceuticals ingredients (APIs) is high. APIs are the most important component to make any drug. According to the Directorate General of Commercial Intelligence and Statistics, in 2016-17, India imported Rs 19,653.25 crore into this API segment, with China holding 66.69%. India’s imports stood at Rs 21,481 crore during 2017-18 and China’s share increased to 68.36%. API and bulk drug imports to Rs 25,552 crore in 2018-19. Since the 2016-17, India’s dependence on China in the pharma sector has increased by 23%.

 

CORONAVIRUS WREAKS HAVOC, THE DEATH TOLL IN CHINA CROSSES 1700

Why dependence on China?

According to the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers, India imports APIs and bulk drugs from China for cost and economic reasons. API and bulk drugs coming from China in terms of cost are beneficial for Indian pharma manufacturers. People in the pharma industry say that the cost of API production in China is 20-30% lower than in India. API production units in India are operating up to 30% of their capacity while API production units in China are operating up to 70% of their capacity. Due to very low-profit margins on API manufacturing in India, the Indian pharma industry imports APIs from China and manufactures and exports medicines to other countries.

India is the largest market for generic drugs in the world

Factories in China are closed due to coronavirus infection. Due to this, suppliers have been affected worldwide. Zydus Cadila chairman Pankaj R Patel says that prices of active pharmaceuticals ingredients may increase rapidly in the coming years. India is the largest market for generic drugs in the world. 12% of the manufacturing sites supplying drugs to the US market are in India. India imports up to 80% of many products of pharma ingredients.

0 0 vote
Article Rating

Related posts

CEO Elon Musk’s net worth increased by Rs 1.25 lakh crore in 23 days

Ritu Nandal

Sovereign external borrowing: A tightrope walk for govt

Ritu Nandal

SBI reduced interest rate on home loan by 0.25%

Ritu Nandal
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Translate »
0
Would love your thoughts, please comment.x
()
x