Medicine prices set to rise sharply amid supply disruptions

Medicine prices are likely to rise significantly in the coming weeks as disruptions hit the supply of raw materials used in pharmaceutical manufacturing, industry sources said.

The ongoing crisis in West Asia has disrupted the supply of key active pharmaceutical ingredients (APIs) and other essential inputs. This has pushed up their prices sharply. Estimates show that raw material costs have risen by 200% to 300%. This could increase retail prices of several commonly used medicines by up to 180%.

Pharmaceutical companies are preparing to pass on the higher input costs to consumers. A formal announcement is expected soon. Common drugs such as paracetamol, painkillers, antibiotics, and blood pressure medicines are likely to become costlier.

“We are seeing an unprecedented rise in raw material costs due to supply disruptions. Manufacturers cannot sustain this without adjusting prices,” said a senior executive at a leading pharmaceutical company, on condition of anonymity.

Another industry representative highlighted logistical challenges and shipment delays. “The supply chain remains unstable. Procurement costs have increased sharply in recent months. This will reflect in the final price of medicines,” the official said.

Healthcare experts have raised concerns about the impact on patients, especially those on long-term treatment. “A sharp rise in medicine prices could affect treatment adherence, particularly among low- and middle-income groups,” a public health expert said.

Patients have also expressed concern over the expected price hike. “I already spend a large part of my income on medicines for blood pressure and diabetes. Any further increase will make it difficult to manage,” said R. Suresh.

Patient groups have urged the government to step in and keep essential medicines affordable. “External factors should not limit access to basic healthcare. Authorities must consider price regulation and support measures,” a representative of a patient welfare association said.

With no immediate resolution to the West Asia crisis, stakeholders expect continued volatility in the pharmaceutical sector. This could add to the financial burden on households.