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Condom Shortage Fears as Iran-US War Disrupts Key Raw Material Supply Chains

The India's condom industry, valued at $861 million, is bracing for production impacts due to supply chain disruptions stemming from the Iran-US war crisis. Major shipping routes like the Strait of Hormuz are suspended, forcing rerouting that adds weeks to transit times and increases logistics costs. Industry stakeholders warn of severe price volatility and shortages of key raw materials like PVC foil, aluminium foil, and chemicals, including a potential 40-50% hike in Ammonia. While some distributors report adequate stocks for the near term, manufacturers flag that ongoing constraints could lead to product shortages and price increases for consumers.

Key Points: Condom Supply at Risk from Iran-US War, Petrochemical Shortages

  • Global shipping delays via Cape of Good Hope
  • Middle East airspace restrictions reduce freight capacity
  • 40-50% price hike expected for key chemical Ammonia
  • Potential shortage of packaging materials like PVC and aluminium foil
2 min read

Iran-US war impact: Shortage of raw material based on petrochemical products like condoms expected to be affected

India's $861M condom market faces potential shortages & price hikes as war disrupts petrochemical supply chains for PVC, foil, and chemicals.

"We anticipate some shortage of raw material based on petrochemical products, which could affect the manufacturing - Jatish N Sheth"

By Shalini Bhardwaj, New Delhi, April 3

India's condom market, valued at USD 861 million, is facing rising production costs and supply chain uncertainties amid the global war crisis, with industry stakeholders warning of potential shortages and price hikes in key raw materials.

According to the sources, "The ongoing global shipping container shortages are causing delays in dispatch to overseas customers, and the ocean freight transit time increased as the Strait of Hormuz was suspended by major carriers and rerouting via Cape of Good Hope is adding 15-20 days to transit. Middle East airspace restrictions: key flight paths suspended, air freight capacity reduced, backlogs building for ready consignments."

Industry stakeholders are flagging a shortage of key inputs, including PVC foil, aluminium foil, poly, chemicals, and packaging materials, along with logistics disruptions and an increase in price of key petrochemicals.

"Production and order execution may be affected due to supply constraints and price volatility in key inputs such as PVC foil, Aluminium foil, poly, chemicals and packaging materials, along with logistics disruptions. 40-50 per cent price hike expected in Ammonia which is used in Condom production. There is an exorbitant increase in the price of silicon oil, causing market uncertainty," the stakeholders stated.

"We anticipate some shortage of raw material based on petrochemical products, which could affect the manufacturing of some of the pharmaceutical products," said Jatish N Sheth of the Karnataka Drugs and Pharmaceuticals Manufacturers' Association.

"There could be a shortage of packaging materials," he added.

One of the leading manufacturing companies, which produces 1,971 million pieces annually, has flagged that increases in logistics costs and key petrochemicals could push up prices of some pharmaceutical products.

However, one distributor said their stocks remain adequate for the near term.

"We at Meditree have sufficient stocks of the Moods range of condoms and can cater to the next four months' requirements. We have 12 products of Moods condoms range," said the India distributor for the Moods range of HLL.

- ANI

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Reader Comments

S
Shreya B
First petrol prices, now this? 😓 Everything is getting expensive because of conflicts far away from us. It's high time India becomes truly 'Atmanirbhar' in manufacturing critical medical supplies. We can't rely on unstable global logistics.
A
Aman W
The article mentions one distributor has stock for 4 months. That's somewhat reassuring for the short term. Hopefully, the situation in the Middle East de-escalates by then and shipping routes normalize. Fingers crossed.
P
Priyanka N
As a healthcare worker, I'm worried. Price hikes in essential prophylactics will hit young adults and low-income groups the hardest. NGOs and government health programs need to stock up now to ensure continued access for those who need it most.
D
David E
While the potential shortage is concerning, I appreciate that the reporting includes both the alarming projections and the counterpoint about current stocks being adequate. It provides a more balanced view than just fear-mongering.
K
Karthik V
The ripple effects are incredible. A conflict affects shipping in the Strait of Hormuz, and suddenly there's a talk of condom shortage in India. Global interdependence is real. We need better crisis buffers in our supply chains.

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