The ongoing conflict in West Asia, which has entered its fifth week, is affecting global supplies of essential commodities like oil and petrochemicals. Many industries around the world are feeling the impact, including India’s USD 860 million (Rs 8,000 crore) condom industry.

How Iran War Is Impacting Condom Industry?

India reportedly makes over 400 crore condoms each year, but manufacturers are now facing shortages of important raw materials. Silicone oil, which is used as a lubricant, is in short supply, and ammonia, which helps stabilise latex, is also becoming much more expensive with prices expected to surge by 40-50 per cent. Moreover, rising costs for packaging materials like PVC and aluminium foil are also making production harder.

According to The Indian Express report, big companies like HLL Lifecare Ltd, Mankind Pharma, and Cupid Ltd are struggling to keep up with production and orders. The report states that supply constraints and price volatility are affecting both manufacturing and the ability to fulfil orders.

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Supply Constraints

An official from a condom manufacturing firm told the news outlet, “Supply constraints and price volatility in key inputs, such as PVC foil, aluminium foil, and packaging materials, have impacted production and order execution.”

He added, “A price increase of 40-50 per cent is expected for ammonia, which is essential for condom production. There has been a significant rise in the price of silicone oil, leading to uncertainty in the market.” Jatish N Sheth from the Karnataka Drugs and Pharmaceuticals Manufacturers Association noted that the problem extends beyond condoms. He stated that any product relying on petrochemicals, from plastics to lubricants, is under stress.

Meanwhile, the central government is also tightening allocations of petrochemicals. An inter-ministerial briefing on March 11 suggested a 35 per cent reduction in supply to certain units, which may put more pressure on the condom industry.

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