West Asia crisis: Govt acts to secure methanol for pharma industry

Amidst the West Asia crisis, the Indian govt is holding talks with Assam Petrochemicals and GNFC to ensure methanol supply for the pharma industry. This addresses disruptions in the global supply chain for crucial solvents used in drug manufacturing.

The government is holding discussions with Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) to ensure an adequate supply of methanol for the pharmaceutical industry, which has been impacted due to disruptions in global supply chains arising from the ongoing West Asia crisis.

Speaking during the Inter-Ministerial Briefing on Recent Developments in West Asia on Thursday, Satyaprakash TL, Joint Secretary, Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers said that methanol has emerged as a key area of concern, even as efforts are underway to stabilise supplies. He said, "Methanol supply has emerged as a major area of concern. In this regard, there have been discussions with Assam Petrochemicals and GNFC, which are ready to supply the necessary quantities of methanol. So work is underway to establish the necessary logistics and supply chains and supply, however, in a moderate way, has already commenced."

Addressing Supply Chain Disruptions

Methanol is a crucial solvent used in the pharmaceutical value chain and is essential for manufacturing various downstream products required in drug production. Ensuring its availability is important for maintaining continuity in the production of medicines. The official noted that global supply chains of pharmaceutical inputs, including solvents and active pharmaceutical ingredients (APIs), have been disrupted due to the West Asia crisis. However, there has been no major increase in the prices of drugs and pharmaceuticals so far.

Customs Duty Relief and Sector Linkages

To support the industry and maintain availability of key inputs, the Department of Revenue has slashed customs duties to zero on 40 petrochemical products through a notification dated April 1, 2026. He highlighted that the pharmaceutical sector has strong linkages with the petroleum and petrochemical sectors, particularly in the supply of critical feedstocks and solvents used in manufacturing drugs and syrups. In coordination with the Ministry of Petroleum and Natural Gas and the Department of Chemicals and Petrochemicals, the government is ensuring an uninterrupted supply of these inputs.

Securing Other Key Inputs

Ammonia, another key solvent, is also being supplied continuously with the support of the Department of Fertilizers, ensuring that downstream production remains unaffected. The official also said that aluminum supply, required for pharmaceutical packaging, has faced constraints. However, restoration efforts are underway, and the situation is expected to normalise within a week. Further, supplies of LPG and high-speed diesel (HSD), which are important for operations such as AmPul. Pharmaceutical units are currently not facing any constraints in these areas. An ampoule (or ampul) is a small, hermetically sealed glass container used in pharmaceuticals to hold a single dose of sterile liquid medication or powder, typically for injections.

He added that the government remains fully engaged in facilitating supplies on a case-to-case basis, responding to requests from industry bodies and associations to ensure uninterrupted production. (ANI)

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