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Drug makers hit hard by increased price of PVC granules
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Laxmi Yadav, Mumbai
February 16 , 2021
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The drug manufacturers and exporters in the country have been hit hard by the increased price of PVC granules since the last few months.
The rates of PVC granules went up from Rs. 105 per kg in August last year to Rs. 180 per kg in January this year leading to its short supply. The increased cost of PVC material, used in pharma packaging and medical device sector, has led to a rise in production cost of pharma products as well as several medical devices such as IV fluid administration set, IV fluid bottles, urine bag, PET bottles etc.
Taking serious note of this, Small and Medium Pharma Manufacturers Association (SMPMA) made a representation to department of commerce, department of pharmaceuticals, ministry of micro, small and medium enterprises (MSME) and ministry of health and family welfare, urging them to streamline the viable cost of PVC granules including its regular supply.
Nipun Jain, chairman, Small and Medium Pharma Manufacturers Association (SMPMA), said, “PVC value in production of pharma products is less than 3% of the cost of whole product but the price of PVC resin has increased significantly from Rs. 105 per kg in August 2020 to Rs. 180 a kg now. This has hit small and medium pharma manufacturers and exporters hard. The industry is already facing several other issues, like GST refunds which are held up despite clearance in Icegate, increasing freight costs of shipping liners, shortage of containers and demand of PVC suppliers for advance payments.”
The department of commerce had swung into action and wrote to the department of chemicals and petrochemicals (DCPC) to ensure smooth supply of PVC granules in the country.
The rate of PVC granules came down slightly to Rs 150 a kg and its supply normalized following the intervention of concerned departments of the government but exporters are still finding it difficult to ship the consignments due to rising input costs.
Said Sandeep Modi, secretary, Federation of Pharmaceuticals and Allied Product Merchant Exporter, “The cost of PVC granules has just reduced but not that much. Merchant exporters are affected by the rise in prices of PVC granules which are used in the pharma packing and medical devices industry. The cost of medical devices made of PVC-- IV fluid administration set, urine bags, PET bottles etc has gone up. The increase in the rate of PVC granules is hampering exporters from fulfilling their orders.”
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