The pharmaceutical industry in the country is facing acute shortage of active pharmaceutical ingredients (APIs) which, if continues for some more time, will threaten the availability of even the commonly used medicines in the country. The shortage of APIs, which included even common ingredients, is so acute that some of the APIs are not even available at double the cost.

According to industry sources, the industry has never seen, at least in the recent past, such a serious crisis. Major reason for the crisis is the sudden slow supply of raw materials and intermediates from China. Due to the forthcoming Olympics in China, the Chinese government has taken very stringent measures to discontinue production of some of the chemicals and raw materials and intermediates so that they don't have to face international criticism due to environmental issue.

Due to the short supply, the prices of raw materials and intermediates have gone through the roof. Another reason for the steep rise in the prices of raw material and intermediates is the spiralling crude oil prices. Recent earthquake in China is another factor which has added fuel to the fire. Many pharma units in earthquake affected areas have closed down their shops. Another factor is the season. This is the time when pharma companies try to utilise their maximum capacity domestically so that in days to come when summer is in full swing, they are able to have sufficient inventories.

Industry sources said if the trend continues for some time, the industry will have to discontinue their production of so many important and commonly used products because NPPA rules do not permit to have more than 10 per cent price increase in a year whereas the impact of most of the commonly used APIs has gone to the extent of 50 per cent, if not more.

Even common APIs like Paracetamol has suddenly disappeared from the market. While it was available at Rs 180 per kg a fortnight ago, it is rarely available and if at all it is available it has become costlier by at least 50 per cent. Similarly, nimesulide, ofloxacillin, tinidazole, methylcobalamine, sulphametazole, etc are few examples whose prices have gone up from 20 per cent to 50 per cent.

Now the common man is going to have the pinch of cephelosporin price also because it is understood that main intermediate i.e. 7ACA which was at 95 US dollar per kg two months ago is being sold at 115 US dollar today. It is understood that cefexime is another cephlosporin which was being sold at Rs 9500 two months ago and it touched Rs 13500 last month.

Meanwhile, the industry has put the entire blame on the government for the crisis. The government has imposed price control on APIs, but there is no such restriction on the prices of raw material and intermediates. Even if the raw material prices go up by 100 per cent, the API cannot increase the prices by more than 10 per cent in a year as per the government restrictions which is visibly unbalanced, an industry leader dealing in API business said.