New Delhi: India is struggling to bridge a logistics gap that has left its huge pharmaceutical industry dependent on imports of a key chemical even as domestic capacity lies idle. While state-run plants can increase production of pharmaceutical-grade methanol, the distance between production centers in the northeast and drug clusters in the west and south has created a distribution bottleneck.
Top government officials are now working across ministries to prevent drug shortages as war in West Asia strains global supply chains. The problem highlights a broader weakness in India’s pharmaceutical status: the inability to efficiently transport raw materials from domestic refineries to laboratories.
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In an update to the media on the position of domestic and fuel and pharmaceutical stocks, TL Satyaprakash, Joint Secretary, Ministry of Chemicals and Fertilizers, said that geographical concentration of production poses distributional problems.
The pharmaceutical industry depends on methanol as both a solvent and a reactant in drug synthesis due to its strong solubilizing ability, controlled reactivity, and high purity. Methanol is key in the production of antibiotics such as streptomycin for tuberculosis, and also serves as a key intermediate in the production of cholesterol-lowering drugs.
The need for methanol in the pharmaceutical industry is estimated at around 500 tonnes per day, with almost 90% of the demand currently met by imports, which have been affected by the war in West Asia.
The pharmaceutical industry is spread across states like Maharashtra, Gujarat, Telangana and Himachal Pradesh, making transportation time and money intensive.
“The refineries are currently producing industrial grade methanol. But they are capable of producing pharmaceutical grade methanol. They can add capacity as per demand. But logistics, especially transportation of methanol from Assam Petrochemicals to major pharmaceutical hubs in the country, are causing problems,” added Satyaprakash.
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Methanol supply remains an issue as Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals Ltd are stepping up as logistics are being strengthened, he pointed out.
Strengthening supply chain infrastructure and the development of regional warehousing or manufacturing hubs could help bridge the gap and ensure efficient and reliable availability of critical inputs for the pharmaceutical sector.
Satyaprakash also added that the pharmaceutical sector depends on petroleum and petrochemical raw materials for the production of medicines and the government is coordinating with the Ministry of Petroleum and Natural Gas and the Ministry of Chemicals and Petrochemicals to ensure uninterrupted supply. Key inputs such as propylene, ammonia and methanol are allocated to a proportional part with fertilizer units supporting the supply of ammonia. Propylene is essential for drugs such as ibuprofen, with supplies supported by Bharat Petroleum Corp. Ltd (BPCL). refineries.
Quality control regulations for the chemical compound morpholine have been eased to encourage production while supplies of aluminum for packaging are being restored. Deliveries from LPG and high-speed diesel for pharmaceutical processes are closely monitored and there are no current outages reported. He added that the government continues to address issues on a case-by-case basis in coordination with industry stakeholders to ensure uninterrupted pharmaceutical production.
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On 1 April, India’s Pharmaceutical Export Promotion Council (Pharmexcil) urged the government to divert supplies of propylene, methanol, ammonia and butane to drug manufacturers, warning that failure to prioritize the pharmaceutical sector would trigger imminent drug shortages.
