Paracetamol prices rise by over 70%; Here's why
Bulk Drug Prices of pain killer drug Paracetamol have risen in India by 75-85 percent in the past two to three months. Prices have risen from Rs 350-400 to Rs 650-700 per kg, according to industry experts. The reason for the spike in the prices is due to the spike in prices of two main raw materials used in the manufacture of paracetamol—Para Amino Phenol or PAP and Acetic Anhydride.
Bulk Drug Prices of pain killer drug Paracetamol have risen in India by 75-85 percent in the past two to three months. Prices have risen from Rs 350-400 to Rs 650-700 per kg, according to industry experts. The reason for the spike in the prices is due to the spike in prices of two main raw materials used in the manufacture of paracetamol—Para Amino Phenol or PAP and Acetic Anhydride.
Para Amino Phenol or PAP comprises 60-70 percent of the raw material used to produce paracetamol. According to bulk drug manufacturers, PAP prices have risen by over 60 percent in the past two to three months. Prices of the raw material have risen from $4 to $6.5 dollars per kg. On the other hand, Acetic Anhydride, which comprises around 15 percent of paracetamol production has seen prices rise over 65 percent since February. Acetic Anhydride prices, according to companies that utilise it has risen from $1000 per ton vs $600.
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The reason for the rise in raw materials prices is due to the rise in prices from China. One of the largest suppliers of PAP in China has shut supplies temporarily since December-January. Factors such as the snowstorm in Texas resulted in a surge in demand from China for supplies and also the captive consumption has risen in China itself.
While prices have spiked, end users who buy the bulk drugs are willing to pay a higher price as long as they have continuity of supplies. In fact, the industry also expects prices of paracetamol raw materials and the bulk drug to revert back to normal in a couple of quarters.
Watch the accompanying video of CNBC-TV18’s Ekta Batra for more details.
(Edited by : Ajay Vaishnav)
First Published: Mar 23, 2021 1:59 PM IST
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