India's Pharmaceutical Sector Faces Ammonia Shortage Amid West Asia Conflict
Ammonia shortage: DoP to seek support from MoPNG, Fertilisers Dept
Business Standard
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The Department of Pharmaceuticals in India is seeking assistance from the Ministry of Petroleum and Natural Gas and the Department of Fertilisers to address a significant ammonia shortage affecting drug manufacturers. The ongoing West Asia conflict has disrupted supplies, leading to concerns over the availability of this crucial input for pharmaceutical production.
- 01India's pharmaceutical industry requires 12,000 tonnes of ammonia monthly but currently receives only 5,000-6,000 tonnes.
- 02The shortage is exacerbated by a recent order mandating surplus ammonia be allocated primarily for fertiliser production.
- 03Ammonia is essential for producing active pharmaceutical ingredients (APIs) and various medicines.
- 04The Ministry of Petroleum and Natural Gas has restricted the use of natural gas for fertiliser production only.
- 05Micro, small, and medium enterprises (MSMEs) in the pharma sector are particularly vulnerable to supply chain disruptions.
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The Department of Pharmaceuticals (DoP) in India is preparing to engage with the Ministry of Petroleum and Natural Gas (MoPNG) and the Department of Fertilisers to secure necessary ammonia supplies for the pharmaceutical industry. The country is currently facing a significant ammonia shortage due to disruptions linked to the West Asia conflict, which has raised alarms among drug manufacturers. India, being one of the largest ammonia importers, relies heavily on imports from Oman, Saudi Arabia, and Qatar. The pharmaceutical sector typically needs 12,000 tonnes of ammonia each month but can only source 5,000-6,000 tonnes at present. Recent regulatory changes have mandated that surplus ammonia from urea manufacturing must be sold for fertiliser production, limiting availability for pharmaceutical use. This order follows a notification from the MoPNG that restricts natural gas usage in fertiliser plants to production purposes only, further complicating the supply situation. Industry experts warn that this shortage could have a cascading effect on the supply chain, particularly impacting micro, small, and medium enterprises (MSMEs) that depend on ammonia sourced from urea plants.
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The ammonia shortage could lead to delays in drug production, affecting availability for consumers and potentially increasing prices.
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