May 20, 2022

The prices of paracetamol increase by more than 70%; here’s why

Bulk Drugs The prices of the painkiller Paracetamol have increased by 75-85% in India in the past two to three months. Prices have gone from Rs 350-400 to Rs 650-700 per kg, according to industry experts. The reason for the surge in prices is due to the soaring prices of the two main raw materials used in the manufacture of paracetamol — Para Amino Phenol or PAP and acetic anhydride.

Para Amino Phenol or PAP comprises 60 to 70 percent of the raw material used to produce paracetamol. According to the bulk drug makers, the prices of PAP have increased by more than 60% in the past two to three months. The prices of the raw material went from $ 4 to $ 6.5 per kg. On the other hand, acetic anhydride, which accounts for about 15 percent of paracetamol production, has seen its prices rise by more than 65 percent since February. Prices for acetic anhydride, depending on the companies that use it, have fallen from $ 1,000 per tonne to $ 600.

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The reason for the rise in commodity prices is due to the rise in prices from China. One of the largest suppliers of PAP in China has temporarily shut down its supplies since December-January. Factors such as the snowstorm in Texas led to an increase in demand for supplies from China, and captive consumption has also increased in China itself.

As prices have skyrocketed, end users who buy drugs wholesale are willing to pay a higher price as long as they have continuity of supply. In fact, the industry also expects the prices of paracetamol raw materials and the bulk drug to return to normal within a few quarters.

Watch CNBC-TV18’s Ekta Batra companion video for more details.

(Edited by : Ajay Vaishnav)

First publication: STI