India mulls 1-time price rise for around 300 essential medicines
India's government is thinking about a one-time price hike for around 300 must-have medicines (including basics like paracetamol, amoxicillin, and atorvastatin) because making them has become much more expensive.
The main reason? Ongoing conflict in West Asia has pushed up the cost of key raw materials used in drug manufacturing.
Officials are discussing this move to help keep these medications available and avoid shortages.
Key input costs up 200-300%
The war in West Asia has disrupted supply chains, and prices of key inputs such as propylene, ammonia and methanol have risen by as much as 200-300%. This hit small pharmaceutical companies especially hard.
Industry groups have asked for a 10% to 20% increase under current drug pricing rules so they can keep producing without losses.
If things stabilize, the government says prices will go back down.