Indian Government Secures Methanol Supply for Pharma Amid Global Disruptions
Centre in talks with Assam Petrochemicals, others to secure methanol supply for pharma amid West Asia disruptions
The Economic TimesImage: The Economic Times
The Indian government is negotiating with Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals Limited to secure methanol supplies for the pharmaceutical industry, which has faced disruptions due to the ongoing crisis in West Asia. Ensuring methanol availability is crucial for maintaining drug production continuity.
- 01Discussions are ongoing with Assam Petrochemicals and GNFC for methanol supply.
- 02Methanol is essential for pharmaceutical manufacturing and has become a key concern.
- 03Customs duties on 40 petrochemical products have been reduced to zero to support the industry.
- 04No significant increase in drug prices has been reported so far.
- 05Efforts are being made to restore aluminum supply for pharmaceutical packaging.
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The Indian government is actively engaged in discussions with Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) to secure a stable supply of methanol for the pharmaceutical sector. This initiative comes in response to disruptions in global supply chains caused by the ongoing crisis in West Asia. Satyaprakash TL, Joint Secretary of the Department of Pharmaceuticals, emphasized that methanol is a critical solvent in drug production, and its availability is vital for maintaining the continuity of medicine manufacturing. The government is working to establish logistics and supply chains, with initial supplies already commencing. To further support the pharmaceutical industry, the Department of Revenue has eliminated customs duties on 40 petrochemical products, effective from April 1, 2026. Despite the supply challenges, no significant price increases for drugs have been observed. Additionally, the government is ensuring a continuous supply of ammonia and addressing constraints in aluminum supply for packaging, with expectations for normalization within a week. The government remains committed to facilitating supplies on a case-by-case basis to ensure uninterrupted production.
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This initiative is crucial for maintaining the stability of drug production in India, ensuring that pharmaceutical companies can continue operations without significant interruptions.
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