The shortfall in supply of bulk drugs and intermediates from China is likely to continue at least for another two to three months as the Beijing Paralympics 2008 is to commence soon after the summer Olympics is over in China, it is learnt.

The Chinese government, which has tightened environmental norms as a pre-requisite to the Beijing Olympics 2008 to be held from August 8 to 24, 2008, may extend the regulations at least to the end of September 2008, as the Paralympics, the multi-sport event for athletes with physical, mental and sensorial disabilities, fear importers of Chinese intermediates.

The stringent regulatory efforts of Chinese government from last year has affected the Indian pharmaceutical manufacturers who import a major share of bulk drugs and intermediates from China for drug production. India, which imports almost 20 per cent of bulk drugs around 70 per cent of intermediates from China has been facing dearth of supplies and price increase due to shortage of products from last year, according to industry sources.

"Our suppliers from China convey that with the Beijing Paralympics 2008 to be held in September, it is sure that the Chinese government will extend the tight regulations at least till the end of September. Further, they are also not sure whether the government will make the norms flexible even after the Paralympics," said a bulk drugs and chemicals importer from Chennai.

The government has also issued notice to block movement of the Express Mail Services (EMS) including any type of parcels, domestic powders and chemicals and Fedex services inside the country. This may affect the chemical manufacturers which have to collect some of its intermediates of bulk drugs from another city for their production, and may indirectly affect the supplies to India from these manufacturers, sources said. The Chinese government has exempted all export operations from the impasse, which comes as a relief to the Indian pharma players.

Meanwhile, the Chinese pharmaceutical players themselves are unsure about the government's actions as the official communications are not transparent. "According to our suppliers, most of the companies are not clear about the actions taken by the government. While all the factories in Beijing have been closed prior to Olympics none of the facilities in Shanghai have been asked to stop operations. The companies in the nearby region of Beijing are expecting orders for closure any time, but as of now no orders are issued by the government in this regard," added the source.

However, though there were apprehensions of total immobilisation of chemicals from seven major cities of China due to Olympics, the Chinese manufacturers outside the Beijing city are yet to receive any official notice on this regard, he quoted Chinese industry sources. Earlier, the trade sources informed that the shipment of bulk drugs and intermediates from seven cities hosting the 2008 summer Olympics - Beijing, Qingdao, Hong Kong, Tianjin, Shanghai, Shenyang, Qinhuangdao - will be pinned by the government for a period of two months from July 15 to September 15.

With the stringent norms blocking the regular supply routes for the industry, the supplies for Indian pharma manufacturers are expected to meet a short term delay in the present situation. Considering the recent immobilisation of domestic distribution channels for chemicals and the expected stoppage of air shipments from seven cities, the suppliers from China has to find new clandestine routes to continue supplies, averred sources.