COVID-19 pandemic challenge has hit a majority of Indian industries in various ways. One sector that has suffered is the pharma sector. Zee Business Managing Editor Anil Singhvi reveals that API import from China has become a major challenge for pharma companies here. While speaking on the matter, Singhvi said that during Coronavirus lockdown, Chinese companies increased prices of API products that most Indian pharma companies import from there. This has led to a big rise in input costs.

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Speaking on the Chinese challenge for Indian pharma companies, Anil Singhvi said, "Indian pharma companies import API products from China. But, during the recent COVID-19 pandemic leading to lockdown in India and other countries, China increased its API prices. This rise is to the tune of 20 per cent to 100 per cent, which is costing Indian pharma companies dearly." 

The impact was massive indeed. The market guru said that in the wake of this major price rise, those Indian pharma companies that import API products from China had no option but to pass it on to their consumers.

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Highlighting ways in which it is going to affect things here, Singhvi said, "Indian pharma companies manufacturing sanitizers are importing IPA — an API product used for sanitizer manufacturing — to the tune of 20,000 to 30,000 tonnes from China. Its price has gone up by around 20 per cent. Similarly, Indian pharma companies are importing another API product PAP, which is used for manufacturing Paracetamol. China has increased PAP price by around 25 per cent and this led to a rise in Paracetamol rates in India by around 30 per cent." 

Singhvi said the companies dependent  on Chinese API product imports, are caught in limbo as they have pressure to deliver these products because they is useful in combating Coronavirus in India. 

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Not just that, the impact is also on equity of these companies. The market guru said that the pharma companies that import API products from China may see some pressure building on their stocks as well.