Wednesday 10 December 2014

Susceptibility to supplies from China is one of the major concerns

In the past and present there have been times that the reliance on the imports of China have cost the end-use industries dear and for several intermediates and fine chemicals globally the closure of several units in China had led to soaring prices and have also caused delays and disruptions to production which was schedules here. According to one of researched report, the pharmaceutical industries in India have time and again been grieved, as the susceptibility to imported raw materials such as active pharmaceutical ingredients (APIs) and their intermediates are mostly from China.

Moreover, squirts in prices were recently seen in some naphthalene-based dye intermediates like H acid and in China its derivatives was attributed to closure of several manufacturing units.

As per the industry experts, to the chemical industry or to India the dependence on China for import of key raw materials is not only one of its kind and nowadays in the global market, China controls more than 80%. However, the reliance on imports from China is a contemplation of the developments in that country and to create an enabling framework the changes in the Indian pharmaceutical, agrochemical industries and the collective failure of policy makers are here, which will look after a much larger Indian fine chemicals industry.

As per the researched report, the shift in focus of several majors in pharmaceutical and agrochemical markets of India is one of the major reasons for the growing role for Chinese producers in these two industries. Nevertheless, for APIs, technical agrochemicals and their intermediates most of the Indian producers have evacuate their manufacturing base in order to focus on the part of the value chain which will bring them the best value.

On the other hand the leading Indian pharma companies have still continue to make APIs and have got lot more careful about their product line up and have opt to outsource or import the rest. Similarly, leading companies in agrochemicals are also putting more awareness to get their products registered and acknowledged amid farmers.


However the sway of China as a supplier of key raw materials not just to India but to the global pharmaceutical industry is dubious to moderate sooner, in spite of anxiety expressed on this count.

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