On life support: Gas crunch puts drug supply pulse at risk

India houses large API facilities responsible for producing a wide range of widely used medicines. (Representative photo)

• Propane shortage halts or reduces pharma production
• Essential drug output hit, risking shortages in coming weeks
• Industry urges government relief to sustain medicine production

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A severe scarcity of propane—vital for powering reactors and generating steam—has forced multiple pharmaceutical units across Gujarat, along with key clusters in Maharashtra, Telangana and Andhra Pradesh, to scale down or suspend operations.

The disruption has begun to impact the output of essential treatments, including fever reducers, nutritional supplements and hormone-based therapies.

According to a report in the Economic Times, industry insiders indicate that boiler-dependent processes have been hit hard, raising concerns of declining output and possible medicine shortages in the coming weeks as firms rely on existing stock while renegotiating fuel supplies.

India, a global hub for bulk drug manufacturing, houses large API facilities responsible for producing a wide range of widely used medicines—from pain relievers and diabetes drugs to antibiotics, anti-inflammatory treatments and critical micronutrients.

Sector experts quoted by ET said nearly 200 units could face shutdown within the next seven  to 10 days. The Indian pharmaceutical industry relies heavily on propane as a primary fuel source to power boilers and sustain the energy-intensive operations involved in API manufacturing. The industry’s dependence on propane for energy-intensive processes has left it vulnerable.

“The ongoing hostilities have choked LNG import routes, triggering sharp supply shortfalls and an unprecedented surge in gas prices that has left manufacturers scrambling to sustain operations,” said an industry expert.

With margins already tight, the energy crisis risks delaying production cycles, driving up costs and weakening India’s standing in global pharmaceutical supply chains. Experts warn that shortages may soon extend to basic medical supplies such as syringes and gloves.

Bulk Drug Pharmaceutical companies have expressed concerns that the LPG shortage could disrupt the production of life-saving medicines, particularly injectable drugs. “The industry relies heavily on LPG for processes like sterilization, granulation, and boiler operations,” added another expert.

Manufacturers have urged the government for relief measures, including exemptions similar to those during the pandemic, allowing them to continue manufacturing under the essential commodities list. Experts cautioned that continued disruption could have widespread implications for both domestic healthcare and international drug availability.