- US-Iran conflict disrupts key raw materials for India's condom production
- India's condom industry worth $860 million faces supply shortages and potential price hikes
- Rising costs also impact cement, steel, glass industries, slowing production in several Indian clusters
The US-Israeli war on Iran was already taking a toll on India's LPG supply, pushing the cylinder prices, and now, the country's condom industry is about to take a hit. Condoms are expected to get expensive with the war disrupting supplies of key raw materials used in their production.
Major condom manufacturers, such as HLL Lifecare, Cupid Limited and Mankind Pharma, say the delivery of key raw materials has been delayed due to disrupted trade routes near the Strait of Hormuz, a key global oil supply route.
Key materials such as silicone oil, used for lubrication, have become hard to get, while anhydrous ammonia, which protects condoms from tearing, has jumped 40 to 50 per cent in price.
India has a huge condom industry worth about $860 million (approx. over Rs 8,000 crore) and produces over 400 crore condoms every year. But companies are now facing a shortage of inputs and rising production costs. There are reports of a price rise in the coming weeks.
About 86 per cent of the ammonia required for producing latex comes from Saudi Arabia, Qatar, and Oman. The shipping disruptions in the Strait of Hormuz hit the supplies.
The scarcity of raw materials and the rising prices of packaging materials, including aluminium foil and PVC, are slowing down production.
"An exorbitant increase in the price of silicone oil is causing market uncertainty," said a senior executive from a leading condom maker.
Prices of ammonia and related petrochemical products have risen sharply from about $0.48 per kg (approx. Rs 45) to $0.68 per kg (approx. Rs 63.4), making production more expensive.
"The Middle East conflict's domino effect is now disrupting contraceptive manufacturing, making price hikes and supply shortages imminent," said Rajeev Jayadevan, former president of the Indian Medical Association (IMA).
He added that this situation would hurt poor and vulnerable people the most. Even a small increase in price can make condoms less affordable for them, so they may stop using them regularly.
"Downstream effects include unplanned pregnancies, rising maternal and infant mortality, and an STI (sexually transmitted infections) rebound," he added.
Iran-US tensions have also affected the construction sector. Rising LNG and fuel prices have enhanced costs for cement, steel, and tile factories. Ceramic units in industrial clusters like Morbi in Gujarat have slowed down.
The gas-dependent glass industry has also suffered, with units in Firozabad either shutting down furnaces or reducing output by 30 to 40 per cent. This has affected the supply of bottles for beer, pharmaceuticals, and perfumes.
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