India Secures Methanol Supply for Pharma Amid West Asia Crisis

The Indian government is in discussions with domestic producers like Assam Petrochemicals and GNFC to secure methanol supplies for the pharmaceutical industry, which has been disrupted by the West Asia crisis. A key official stated that while logistics are being established, moderate supply has already begun. To support the sector, customs duties have been eliminated on 40 critical petrochemical products. The government is coordinating across ministries to ensure the supply of other essential inputs like ammonia, with aluminum packaging constraints expected to ease within a week.

Key Points: India Secures Methanol for Pharma Amid Supply Chain Disruptions

  • Talks with domestic firms for methanol supply
  • Zero customs duty on 40 petrochemicals
  • Aluminum packaging supply to normalize in a week
  • LPG and diesel supplies currently unconstrained
3 min read

Centre in talks with Assam Petrochemicals, others to secure methanol supply for pharma amid West Asia disruptions

Government in talks with Assam Petrochemicals, GNFC to ensure methanol supply for drug manufacturing, impacted by West Asia crisis.

"Methanol supply has emerged as a major area of concern. - Satyaprakash TL"

New Delhi, April 9

The government is holding discussions with Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals Limited 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."

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.

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.

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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Reader Comments

P
Priya S
This is crucial for medicine production. As someone with elderly parents who need regular medication, I'm relieved to see the government is acting to prevent shortages. The zero customs duty on petrochemical products is a smart move to keep costs down. 👍
R
Rohit P
While the intent is good, I hope this doesn't lead to price gouging by domestic suppliers. We've seen it happen before during crises. The government must ensure these companies supply at fair prices and not exploit the situation. Transparency is key.
S
Sarah B
Interesting to see Assam and Gujarat stepping up. India's pharmaceutical sector is a global powerhouse, and securing its supply chain from these external shocks is vital not just for us but for many developing countries that depend on Indian medicines.
V
Vikram M
The inter-ministerial coordination mentioned here is the real story. When MoPNG, Chemicals, Fertilizers, and Revenue work together, things can get done. This is how governance should work, especially during a crisis. Hope they keep the momentum for other critical sectors too.
K
Karthik V
Good news, but what about the long-term plan? We need to build more resilience into our pharma supply chain beyond just reacting to crises. Investment in domestic production of APIs and solvents should be a national priority. Jai Hind! 🇮🇳

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