 (6).png)
3 days ago
1
ARTICLE AD BOX
The pharmaceutical sector faces a critical methanol shortage due to logistical hurdles in transporting domestic supplies from remote regions. The government is now coordinating efforts to prioritize chemical allocations and stabilize life-saving drug production.
Methanol is crucial in the manufacture of antibiotics such as streptomycin for tuberculosis and also serves as a key intermediate in the production of cholesterol-lowering medication.(Bloomberg)New Delhi: India is struggling to bridge a logistical gap that leaves its huge pharmaceutical industry reliant on imports for a key chemical, even as domestic capacity sits idle. While state-run plants can increase pharma-grade methanol production, the distance between manufacturing hubs in the northeast and drug clusters in the west and south has created a distribution bottleneck.
Top government officials are now coordinating between ministries to prevent medicine shortages as the West Asia war squeezes global supply chains. The issue shows a broader weakness in India's pharmaceutical status: the inability to efficiently transport raw materials from domestic refineries to the lab bench.
At an update to the media on the domestic and fuel and pharmaceutical stock position, T.L. Satyaprakash, joint secretary, ministry of chemical and fertilizers, said the geographic concentration of manufacturing poses distribution challenges.
The pharmaceutical industry depends on methanol as both a solvent and a reactant in drug synthesis, owing to its strong solvency, controlled reactivity and high purity. Methanol is crucial in the manufacture of antibiotics such as streptomycin for tuberculosis and also serves as a key intermediate in the production of cholesterol-lowering medication.
The pharmaceutical industry’s methanol requirement is estimated at around 500 tonnes per day, with nearly 90% of demand currently met through imports, which have been hit by the war in West Asia.
The pharmaceutical industry is dispersed across states such as Maharashtra, Gujarat, Telangana, and Himachal Pradesh, making transport both time-consuming and cost-intensive.
"The refineries are currently manufacturing industrial methanol. However, they are capable of manufacturing pharma-grade methanol. They can ramp up capacity as per demand. However, logistics is a cause of concern, especially transporting methanol from Assam Petrochemicals to major pharma hubs in the country," Satyaprakash added.
Methanol supply remains a concern, with Assam Petrochemicals and Gujarat Narmada Valley Fertilizers & Chemicals Ltd stepping in as logistics are strengthened, he stressed.
Strengthening supply chain infrastructure and developing regional storage or production hubs could help bridge the gap, ensuring efficient and reliable availability of critical inputs for the pharma sector.
Satyaprakash also added that the pharmaceutical sector depends on petroleum and petrochemical feedstocks for drug manufacturing, and the government is coordinating with the ministry of petroleum and natural gas and the department of chemicals and petrochemicals to ensure an uninterrupted supply. Key inputs such as propylene, ammonia and methanol are being allocated on a pro rata basis, with fertiliser units supporting ammonia supply. Propylene is critical for medicines like ibuprofen, with supplies supported by Bharat Petroleum Corp. Ltd (BPCL) refineries.
The quality control order on chemical compound morpholine has been relaxed to support production, while aluminium supply for packaging is being restored. Supplies of LPG and high-speed diesel for pharmaceutical processes are under close watch, with no current disruptions reported. He added that the government continues to address issues on a case-to-case basis in coordination with industry stakeholders to ensure uninterrupted pharma production.
On 1 April, the Pharmaceuticals Export Promotion Council of India (Pharmexcil) urged the government to divert supplies of propylene, methanol, ammonia, and butane to drug makers, warning that a failure to prioritize the pharmaceutical sector would trigger imminent medicine shortages.
About the Authors
Vijay C Roy
Vijay C. Roy is a journalist with over 21 years of experience covering various news beats across different organisations such as Business Standard and The Tribune. In the past, he has covered beats such as finance, auto, MSME, commodities, FMCG, pharmaceutical, agriculture, IT/ITES, infrastructure and start-ups. He joined Mint in February 2025, and covers agriculture, food processing, fertilizers, environment and climate change, bringing over two decades of experience reporting on farm policy, food inflation, crop trade, and rural livelihoods.<br><br>Vijay’s areas of reporting include food security and climate change policies, focusing on their impact on different stakeholders and their implications. His expertise lies in simplifying complex agri-economic issues such as edible oil import dependence, cotton and wheat trends, fertiliser subsidies, and climate-related risks. He has covered key developments including global supply disruptions and evolving trade policies, offering both macroeconomic perspective and field-level context. Known for his credible and balanced reporting, he follows a rigorous, fact-based approach that prioritises accuracy and context. He is driven by a commitment to public interest, aiming to make critical agricultural and economic issues accessible while contributing to informed policy and industry discussions.
Rituraj Baruah
Rituraj Baruah is a special correspondent covering energy, housing, urban affairs, heavy industries and small businesses at Mint. He has reported on diverse sectors over the last eight years including, commodities and stocks market, insolvency and real estate; with previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
English (US) ·