API Prices Fall Sharply Easing Pressure On India's Pharmaceutical Industry

(MENAFN- KNN India) New Delhi, Jun 6 (KNN) India's pharmaceutical sector is experiencing significant relief as the prices of Active Pharmaceutical Ingredients (APIs) have dropped sharply, thanks to increased domestic production and aggressive pricing strategies from Chinese suppliers.

This decline is expected to enhance profit margins and stabilise the supply chain within the industry.

The surge in API prices during the COVID-19 pandemic had strained India's pharmaceutical companies, which rely heavily on imports for key ingredients.

For instance, the price of paracetamol API soared from Rs 900 per kg during the pandemic to Rs 600 shortly after, but it has now decreased to Rs 250 per kg. Similarly, the cost of meropenem API has fallen from Rs 75,000 per kg to Rs 45,000.

This price reduction is attributed to overcapacity in production, particularly from Chinese suppliers, and increased domestic manufacturing driven by government initiatives.

The Indian government's Production Linked Incentive (PLI) schemes have encouraged local production of critical APIs, reducing dependency on imports and fostering self-reliance.

As a result, Indian companies are now better positioned to meet domestic demand and compete effectively in global markets.

Experts anticipate that the trend of falling API prices will continue, providing a boost to India's pharmaceutical industry.

This development not only alleviates cost pressures but also enhances the competitiveness of Indian pharmaceutical companies in the global market.

In summary, the sharp decline in API prices marks a positive shift for India's pharmaceutical industry, offering relief to manufacturers and paving the way for more affordable medicine production.

(KNN Bureau)

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