The healthcare sector is feeling the heat of the ongoing West Asia conflict, with prices of surgical disposables, pharmaceutical raw materials and medicines rising sharply over the past few months.Hospital suppliers and pharma traders in Hyderabad said prices of essential consumables such as IV sets, IV cannulas, syringes, urine bags, suction catheters, gastric tubes and synthetic gloves have increased by 15% to 30%. Industry officials attributed the rise to increasing crude oil prices, higher transportation costs and disruptions in global shipping routes triggered by the conflict.Most surgical disposables are manufactured using PVC and other petroleum-based materials, making the sector highly vulnerable to crude oil volatility. Petrochemicals are also used in pharma feedstocks and active pharmaceutical ingredients (APIs), the key raw materials used in medicines.80% rise in raw materialsKB Ramachandra, president of the Twin Cities Hospitals Suppliers Association, said manufacturers had informed suppliers that raw material prices in some categories had increased by nearly 80%.“Factories depend on diesel, gas and electricity for heating moulds and running manufacturing units. Once crude oil prices rise, the impact is felt across the supply chain,” he said.“The price of a syringe box has increased from around ₹135 to ₹150₹ 160. IV cannulas that earlier sold at ₹6 are now priced around ₹7, while synthetic gloves have risen from ₹8 to ₹9.50 per pair. Nitrile gloves have increased from ₹1.90 to ₹2.30 per piece,” he added.Packaging materials used in the pharmaceutical sector too have become significantly costlier. Suppliers said PVC used for blister packs has risen from ₹130 per kg to nearly ₹190 per kg. Aluminium caps used in medicine bottles have increased from 45 paise to 75 paise per cap, while PET bottles, foils and other petroleum-based packaging materials have witnessed hikes of 80% to 100%.Medicine production hitOn April 1, citing rising costs of raw materials and APIs, the National Pharmaceutical Pricing Authority revised ceiling prices of more than 760 essential medicines, including antibiotics, painkillers, diabetes and cardiac drugs.Hyderabad, regarded as India’s bulk drugs capital, is a major hub for manufacturing APIs and intermediates. Industry experts said rising raw material costs are now directly impacting medicine production.A member of the Telangana Chemists and Druggists Association said raw material prices for several medicines had surged sharply since the Iran-US-Israel conflict escalated.“The cost of raw materials for paracetamol has increased nearly four times from around ₹200 per kg to ₹650₹700 per kg. Inputs for Diclofenac have risen from ₹600 per kg to nearly ₹950 per kg. Omeprazole raw material costs have doubled from ₹300 to ₹650 per kg,” he said.Experts said branded medicines too have already seen price hikes of 15%-20%, while overall production costs have risen by nearly 30%-40% since March.Further hikes likelyPharmacy retailers said that many companies are still supplying old stocks at previous rates, but fresh batches are arriving at higher prices.“At present, retailers are trying not to burden patients immediately, but if crude oil prices continue to rise, medicine prices may increase further in the coming months,” said Hitesh Aggarwal, a pharmacy store owner in Khairatabad.Hospital suppliers warned that if the conflict continues, patients will eventually bear the burden through higher treatment and surgery costs.
