The pharmaceutical industry, especially the bulk drug manufacturers, in the state of Andhra Pradesh, has hit badly with the rise in the prices of raw materials and four hours of power cut in the state.

According to the industry resources, pharmaceutical industry in the state is in a bad state with the increasing costs of raw materials, including intermediates. Sources said that the raw material price has witnessed 100 to 300 per cent increase in the recent past. The situation has aggravated with the shortfall in the supply of intermediates from China.

The recent introduction of four hours of power cut in the state has worsened the situation as the industry solely depended on electricity for manufacturing and other requirements. Currently the industry has left with the only option of depending on diesel generator to ensure that is not affecting the day-today operations. Sources said that it is two to three per cent costlier.

Commenting on the issues faced by the industry in the state, M Narayana Reddy, president, Bulk Drug Manufacturers Association (BDMA), said, "The shortfall in the supply of raw materials from China affected the industry. Moreover, the recent introduction of power cut in the state also hit the industry. Currently companies have to depend on diesel generator to ensure the functioning, which is two to three times costlier." However, he added that the government is making all the attempts to ensure regular power supply.

Moreover, the pollution control norms, which the industry alleged is getting more and more stringent. Though the industry is willing to comply with the pollution control norms, many of them, especially the small and medium players, find it difficult to comply with the pollution norms, as that requires huge investment. In the industry meeting with the Department of Pharmaceuticals, the industry has expressed its concern over the pollution control norms and urged the government to support it financially and by providing technologies. The industry has expressed that the pollution control norms may get flexible in the future.