The raw material for medicine coming from China have become more expensive. Its is selling at 30-40% higher price in the Indian pharmaceutical industry. Prices will increase in the coming days as per Pharmaceutical companies. The common has to spend more money on medicines in the coming days.
Experts believe that China has purposely increased the price of medicine raw material. They have increased the prices to mount pressure on the Indian government. The violent clashes between Indians and Chinese are the main reason for the price increase.
Pharmaceutical companies blaming violent clash between India and China for the price increase
There are many drug companies in Uttarakhand and Himachal Pradesh. About half of the total drug in India produced by these two states. They get most of the raw material for their products from China. The cost of Chinese raw material is lower than in Europe and American countries.
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A big pharmaceutical company said that. The violent clashes in the Galwan Valley of eastern Ladhak. The boycott China’s goods moment has increased the prices of raw material. Now the prices have raised the prices by 30-40%. Many believe that big suppliers are taking advantage of this opportunity.
Only 10 to 12 traders hold the monopoly of raw material supply to pharmaceutical companies
There are 10-12 big suppliers in the country who source raw materials and salts from China and sell them to producers across the country. They have complete control over the raw material supply to Indian pharmaceutical companies. Those suppliers are taking advantage of the current situation. Now medicine manufacturers are forced to buy raw material at higher prices. If this situation continues then medicine prices in India will go up. The common man will force spending more money on medicine.
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The pharmaceutical manufacturers also blamed that that suppliers are demanding for advance payment. Many suppliers are holding stock and asking for advance payment. Now the pharmaceutical industry doesn’t have any choice to pay higher money for raw material.
80% of raw material for medicine imported from China in India
Currently, about 80 percent of the raw material imported from China. The raw material cost in Europe and America is almost double the coast of china. If this situation continues then the process and supply of medicine will get an impact in India.
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It is not just the pharmaceutical industry depends on China. Other industries are also dependent on China for raw material. It this border tension will continue for more days than the situation in India will get worst. Our economy is already struggling with slow down and coronavirus. Now, this tension between India and China will hit us back.
The diplomatic strategy with China needs are rethinking. The Ministry of External Affairs miserably failed to handle the diplomatic relation with China. Now the Government has to form a new strategy and solve this tension. This will be in the best interest of both the countries.
