The Indian government is in active discussions with Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) to secure adequate methanol supplies for the pharmaceutical industry, which has been hit by global supply chain disruptions stemming from the West Asia crisis.
The update was shared at an Inter-Ministerial Briefing on Recent Developments in West Asia on Thursday.
Satyaprakash TL, Joint Secretary in the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers, confirmed that methanol has become a central area of concern for the sector.
"Methanol supply has emerged as a major area of concern. In this regard, there have been discussions with Assam Petrochemicals and GNFC, which are ready to supply the necessary quantities of methanol," he said, adding that logistics and supply chain frameworks are being established and that moderate supply has already begun.
Methanol is a critical solvent used across the pharmaceutical value chain, particularly in the manufacturing of downstream products required for drug production.
Also Read: Zubeen Garg’s Wife, Sister Cast Votes in Dispur; Urge Voters to Participate
Beyond methanol, the West Asia crisis has disrupted global supplies of several pharmaceutical inputs — including solvents and active pharmaceutical ingredients (APIs). Despite the pressure, the government noted that drug prices have not seen any major increase so far.
Other inputs are also being monitored closely. Ammonia, another key solvent, is being supplied continuously with support from the Department of Fertilizers. Aluminium — used in pharmaceutical packaging — has faced constraints due to rising demand and supply disruptions, though the situation is expected to normalise within a week.
Supplies of LPG and high-speed diesel, important for operations such as ampoule manufacturing, are also being tracked, with pharmaceutical units currently reporting no active constraints in these areas.
To support the industry and protect the availability of critical inputs, the Department of Revenue slashed customs duties to zero on 40 petrochemical products through a notification dated April 1, 2026.
The government is coordinating across the Ministry of Petroleum and Natural Gas and the Department of Chemicals and Petrochemicals to ensure uninterrupted supply of feedstocks and solvents essential to drug manufacturing.
The official emphasised that the government remains fully engaged with industry bodies and associations, responding to requests on a case-by-case basis to ensure that pharmaceutical production continues without disruption.