The conflict in the Middle East has impacted drug production and supply in Nepal, leading to unexpected increases in the prices of raw materials and packaging components, according to producers. Santosh Baral, General Secretary of the Nepal Pharmaceutical Manufacturers Association, stated that the production costs of petroleum-based medicines have risen by 40 to 100 percent. Narayan Dhakal, Director General of the Department of Drug Administration, also highlighted that the price hikes and supply challenges are creating difficulties in producing medicines at the fixed prices. Kathmandu, 11 Chaitra.
The escalating conflict in the Middle East (West Asia) has begun to directly affect pharmaceutical production and supply in Nepal. Santosh Baral, General Secretary of the Nepal Pharmaceutical Manufacturers Association (APPON), emphasized that the abnormal rise in costs for raw materials and packaging has significantly impacted the pharmaceutical sector. Since medicine production and packaging are heavily dependent on petroleum byproducts, any disruption in the supply chain leads to drug shortages and price increases, Baral explained.
According to the pharmaceutical industry, some raw materials used in medicines are petrochemical derivatives. An increase in petroleum prices automatically drives up the cost of these raw materials, putting upward pressure on medicine manufacturing costs, which directly affects retail prices. Substances used in capsules, tablet coatings, syrups such as solvents, and ointments like petroleum jelly are also petroleum-based, so any supply disruption affects production, pharmaceutical producers reported.
Packaging issues are also expected to worsen. Materials such as blister packs, plastic bottles, and syringes—used for storing medicines—are derived from petrochemicals. Supply interruptions in these components could impact distribution systems. Since both raw materials and finished medicines have to be imported, fluctuations in the international market directly affect the Nepalese market, General Secretary Baral explained. Industry representatives also noted that drug production costs have increased by 40 to 100 percent.
