The ripples of the escalating conflict in West Asia have reached Indian bedrooms. India’s Rs 8,170 crore condom manufacturing industry is currently grappling with a severe supply chain crisis, leading to widespread shortages and an anticipated 50 per cent surge in retail prices.
The shortage is not a result of a sudden spike in demand, but a direct consequence of disrupted maritime trade routes and the choking of petrochemical supplies and lubricants essential for production and increased production costs for the sector.
India produces over 400 crore condoms annually, with major manufacturers like state-run HLL Lifecare Ltd, Mankind Pharma Ltd, and Cupid Ltd facing supply chain challenges. HLL Lifecare alone produces approximately 221 crore condoms each year.
Condom production depends heavily on silicone oil and ammonia. Silicone oil, a crucial lubricant, is currently in short supply, leading to market uncertainty. Ammonia, vital for stabilising raw latex, is expected to see price hikes of 40-50 per cent and rising packaging material costs have further increased production expenses.
According to an official from a condom manufacturing firm, the supply constraints and price volatility in materials such as PVC foil, aluminium foil, and packaging have impacted production and order fulfilment, Indian Express reported. Logistics disruptions have added to these difficulties.
The situation is further aggravated by the nature of India’s condom market, which operates on a high-volume, low-margin model to ensure affordability for its 140 crore population. This model is now under strain.
Manufacturing costs have become unpredictable, and an inter-ministerial briefing on March 11 indicated that domestic petrochemical units may face up to a 35 per cent reduction in resource allocation to prioritise fuel and energy needs, tightening supply further for manufacturers.
Experts warn that the crisis has serious public health implications. Condoms play a crucial role in family planning and in preventing sexually transmitted infections (STIs). Any decline in usage due to higher prices or limited availability could have long-term social consequences. Early signs of disruption are already visible, with pharmacies in major metros such as Mumbai and Delhi reporting patchy supplies.
