Beyond LPG, Petrol, Diesel: Iran-US War May Cause Condom Supply Crunch; Here's Why

Iran-US war's domino effect is now moving beyond LPG gas cylinder, petrol, diesel, fertilisers industry as its ripple effects are now directly impacting the least-expected sector. The war in West Asia is likely to disrupt supply chains for critical petrochemicals and lubricants that are crucial to the condom manufacturing industry in India.

The condom producing industry is experiencing material shortages and a rise in production costs due to supply chain constraints because of the Iran-US war, reported the Indian Express. The steep increase in production cost is squeezing company profits. While there can be some price hikes in the coming season due the issue, the development may decrease sales numbers, an industry employee told IE.

How Iran-US War Is Impacting the Condom Manufacturing Industry?

The Strait of Hormuz blockade due to the Iran-US war has led to a supply-side crunch of crude oil and even other petroleum products. Silicone oil is a key component for lubrication, whereas anhydrous ammonia is another crucial chemical which protects condoms from tearing. The Iran-US war has reportedly impacted the supply chains for these key petrochemicals and lubricants.

These materials are central to India's condom manufacturing industry, which produces over 400 crore units every year. The sector is valued at around $860 million. As per media reports, manufacturers are now facing difficulty in sourcing important inputs on time and at a stable price.

Pharma Companies To Face Heat Due To Iran-US War

HLL Lifecare Ltd, Mankind Pharma Ltd, and Cupid Ltd are one of the leading condom manufacturers in India and may be impacted due to the supply shocks. State-run HLL Lifecare Ltd alone manufactures nearly 221 crore condoms annually. Companies describe a mix of raw material shortages, logistics delays and sudden cost spikes that together are complicating condom production planning and delivery schedules.

Iran-US War Impact On Pharma Industry

Shortage of key ingredients like silicone and anhydrous ammonia is not the only challenge faced by condom manufacturers, as rising cost of PVC foil and aluminium foil has made product packaging more expensive.

Government briefings suggest tighter supplies may continue. During an inter-ministerial meeting on March 11, officials indicated that petrochemical units could face a 35 per cent cut in resource allocation. Authorities plan to channel available supplies to sectors considered higher priority. This approach may further limit access to materials used in products such as condoms.

Iran-US War

Iran-US war entered its second month in April and has sparked concerns of global slowdown and economic shocks due to the West Asia crisis. In his first address to the nation on Iran-US war, US President Donald Trump said that he is keen to end the war. However, he also hinted that the US is ready to intensify its strike on Iran in the coming days.