West Asia war may trigger shortage of key hospital supplies

The West Asia conflict is beginning to ripple through the domestic medical device industry, with manufacturers warning of a possible shortage of essential hospital consumables as early as next month. The pressure is compounded by a shortage of industrial gas used in boilers and rising energy costs, forcing companies to rely on more expensive diesel or power alternatives. With most manufacturers holding barely 15–20 days of raw material inventory, the squeeze could soon disrupt production and supply of critical disposables to hospitals and healthcare facilities, industry experts told TOI.Typically, hospitals carry an inventory of disposables, including IV bags and lines, cannula, syringes, and surgical items for only a couple of days. A sharp escalation in the prices of key medical-grade plastics is increasing the pressure on device manufacturers. In March alone, the cost of widely used polymers such as ABS has climbed from about Rs140 a kg to nearly Rs 190, while SAN has risen from Rs 135 to Rs 180. Polycarbonate has jumped to around Rs 240 per kg, and polypropylene—from which a large range of disposables are made—has increased from roughly Rs 103 to Rs 147 per kg. Other critical inputs, including LDPE, HDPE, and polyester chips, have seen similar spikes. PVC compounds and resins, essential for products such as infusion sets and urine bags, have also risen. Industry executives say the surge is not just about higher prices but also tightening availability, with a shortage of several grades of medical plastics beginning to emerge.“We are deeply concerned about the spike in input costs, with prices of key raw materials rising by an average 30%. At the same time, freight costs have nearly doubled due to higher insurance premiums and war-risk surcharges on shipping routes. Coupled with shortages of industrial gas, these factors are significantly increasing production costs and will put pressure on the coming months”, Himanshu Baid, MD, Poly Medicure said. The impact could be particularly severe for the sector’s vast base of small manufacturers, as nearly 90% of the domestic medical device companies are MSMEs, many of whom are already struggling with hoarding of key plastics and volatile input prices.“The Strait of Hormuz blockade and Middle East tensions have spiked medical device input costs by nearly 50% for plastics and doubled PNG gas prices used for power generation, eroding thin margins on essentials like syringes and catheters. While one to three week shipment delays are manageable via buffers, prolonged disruptions risk production halts, hospital shortages, and inflated prices from market abuse by dominant large raw materials players. Urgent government action is needed to safeguard 5 lakh+ jobs, particularly in the MSME sector,” says Rajiv Nath, Forum Coordinator, AiMeD. “For smaller exporters who operate with limited financial buffers, these disruptions can quickly translate into liquidity stress. Temporary financial support mechanisms could help stabilise MSME exporters during this period of geopolitical uncertainty’’, an executive from Sarjak Container Lines, a shipping and project logistics company, said.