Disruption in petrochemical supply amid Iran war hits India’s ₹8,000 crore condom industry

The ongoing conflict in West Asia has begun to ripple through an unlikely sector in India, with disruptions in petrochemical supply chains affecting the country’s ₹8,000 crore condom manufacturing industry. India’s over $860 million condom market, which produces more than 400 crore units annually, is facing mounting pressure as shortages of key raw materials and rising input costs threaten production and supply. Industry leaders, including state-run HLL Lifecare Ltd, Mankind Pharma Ltd and Cupid Ltd, are grappling with the fallout.

How are condoms made?

The manufacturing of condoms depends heavily on two critical inputs - silicone oil and ammonia. Silicone oil, a key lubricant used in production, is currently in short supply, triggering uncertainty across the market. At the same time, ammonia, essential for stabilising raw latex, is expected to see price increases of 40 to 50 per cent, significantly raising production costs.

As per The Indian Express, an official from a condom manufacturing firm said supply constraints and price volatility in inputs such as PVC foil, aluminium foil and packaging materials have disrupted production and order execution. Logistics bottlenecks linked to the regional conflict have compounded these challenges.

“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,” the official told the newspaper.

Broader impact of supply crisis

Industry bodies have acknowledged the broader impact of the crisis. Jatish N Sheth of the Karnataka Drugs and Pharmaceuticals Manufacturers Association told the news outlet that any product reliant on petrochemicals is being affected. “We are definitely impacted, but we need to assess the extent and depth of the impact on the industry,” he said.

The situation may worsen as the government reprioritises resource allocation. During an inter-ministerial briefing on March 11, officials indicated that petrochemical units could face a 35 per cent reduction in resource allocation to safeguard higher-priority sectors, further tightening supply for products such as condoms.