India's Ammonia Directive Threatens Pharmaceutical Production
Govt's ammonia rule to hurt pharma cos as directive restricts sale of surplus to fertiliser firms
The Economic TimesImage: The Economic Times
India's pharmaceutical industry is facing a potential raw material shortage due to a new directive restricting surplus ammonia sales to fertilizer manufacturers. This could disrupt domestic production, lead to medicine shortages, and impact export commitments, raising concerns among drugmakers reliant on ammonia for various medicines and active pharmaceutical ingredients.
- 01New advisory restricts surplus ammonia sales to fertilizer sector.
- 02Pharmaceutical companies rely heavily on ammonia for production.
- 03Concerns raised over potential medicine shortages and export impacts.
- 04Pharmexcil plans to seek government clarification on the directive.
- 05Disruption in ammonia supply could affect long-standing relationships with overseas buyers.
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India's pharmaceutical industry is bracing for a potential raw material crunch following a directive from the Department of Fertilizers that restricts the sale of surplus ammonia strictly for fertilizer production. This advisory prioritizes ammonia supply to phosphorus and potassium (P&K) and nitrogen, phosphorus, potassium (NPK) manufacturers, raising alarm among drugmakers who rely on ammonia for producing a wide range of medicines and active pharmaceutical ingredients (APIs). Namit Joshi, chairman of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), expressed concerns that the directive could lead to significant shortages in the pharmaceutical sector. The order follows a March 9 gazette notification mandating that natural gas supplied to fertilizer plants be used solely for fertilizer production. Industry executives warn that this could disrupt domestic production, delay order fulfillment, and strain relationships with international buyers. Pharmexcil plans to address these concerns with the government, emphasizing the critical role ammonia plays in the synthesis of various APIs and formulations.
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The directive could lead to increased medicine shortages, affecting availability for consumers and potentially raising prices.
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