Centre in talks with Assam Petrochemicals to secure methanol supply for pharma

The Central government is in discussions with Assam Petrochemicals Limited (APL) and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) to ensure an adequate supply of methanol for the pharmaceutical industry, which has been impacted by global supply chain disruptions arising from the ongoing West Asia crisis.

 

Speaking during an inter-ministerial briefing on recent developments in West Asia, Satyaprakash TL, Joint Secretary in the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers, said that methanol has emerged as a key area of concern. He noted that both APL and GNFC have expressed readiness to supply the required quantities, and efforts are underway to establish the necessary logistics and supply chains. He added that moderate supplies have already commenced.

 

Methanol is a crucial solvent used in the pharmaceutical value chain and plays a vital role in the manufacture of various downstream products required for drug production. Ensuring its availability is essential for maintaining the continuity of medicine manufacturing.

 

The official stated that global supply chains for pharmaceutical inputs, including solvents and active pharmaceutical ingredients (APIs), have been affected by the West Asia crisis. However, he assured that there has been no significant increase in the prices of drugs and pharmaceuticals so far.

 

To further support the industry, the Department of Revenue has reduced customs duties to zero on 40 petrochemical products through a notification issued on April 1, 2026. The government is also coordinating with the Ministry of Petroleum and Natural Gas and the Department of Chemicals and Petrochemicals to ensure an uninterrupted supply of critical feedstocks and solvents.

 

In addition to methanol, the supply of ammonia another key solvent continues with the support of the Department of Fertilizers, ensuring that downstream pharmaceutical production remains unaffected. While there have been some constraints in the supply of aluminium used for pharmaceutical packaging, restoration efforts are underway, and the situation is expected to normalise within a week.

 

The official also confirmed that supplies of LPG and high-speed diesel (HSD), essential for the operation of pharmaceutical manufacturing units, remain stable and are not facing any constraints.

 

The government remains actively engaged with industry stakeholders to facilitate the uninterrupted availability of essential inputs, ensuring the continued production of medicines across the country.