Middle East Conflict Disrupts India’s Condom Industry, Prices Set to Surge Amid Raw Material Crisis

Major condom manufacturers, including HLL Lifecare, Cupid Limited, and Mankind Pharma, have reported delays in the delivery of essential raw materials due to disrupted trade routes near the Strait of Hormuz, a critical global oil supply corridor. The disruption has significantly impacted the availability of silicone oil, used for lubrication, while anhydrous ammonia, a crucial component that protects condoms from tearing, has witnessed a sharp price increase of 40 to 50 per cent.

India’s condom industry, valued at approximately $860 million (over Rs 8,000 crore), produces more than 400 crore condoms annually. However, manufacturers are now grappling with severe shortages of inputs and escalating production costs, with reports indicating an imminent price rise in the coming weeks. The situation is further exacerbated by India’s heavy reliance on imports, as about 86 per cent of the ammonia required for producing latex is sourced from Saudi Arabia, Qatar, and Oman. Shipping disruptions in the Strait of Hormuz have directly affected these supplies.

The crisis extends beyond raw materials to packaging, as rising prices of aluminium foil and PVC are slowing down production. A senior executive from a leading condom manufacturer stated that an exorbitant increase in the price of silicone oil is causing significant market uncertainty.

Data indicates that prices of ammonia and related petrochemical products have surged sharply from about

Data indicates that prices of ammonia and related petrochemical products have surged sharply from about $0.48 per kg (approximately Rs 45) to $0.68 per kg (approximately Rs 63.4), further inflating production costs. Rajeev Jayadevan, former president of the Indian Medical Association (IMA), warned that the Middle East conflict’s domino effect is now disrupting contraceptive manufacturing, making price hikes and supply shortages imminent.

Data indicates that prices of ammonia and related petrochemical products have surged sharply from about $0.48 per kg (approximately Rs 45) to $0.68 per kg (approximately Rs 63.4), further inflating production costs. Rajeev Jayadevan, former president of the Indian Medical Association (IMA), warned that the Middle East conflict’s domino effect is now disrupting contraceptive manufacturing, making price hikes and supply shortages imminent.

He emphasized that the impact would be most severe on poor and vulnerable populations, as even a marginal increase in prices could make condoms less affordable, potentially reducing regular usage. He cautioned that downstream effects could include unplanned pregnancies, rising maternal and infant mortality, and a rebound in sexually transmitted infections (STIs).

The ripple effects of Iran-US tensions are also being felt across other sectors. Rising LNG and fuel prices have increased operational costs for cement, steel, and tile factories, while ceramic units in industrial hubs like Morbi in Gujarat have slowed production. The gas-dependent glass industry has been particularly affected, with units in Firozabad either shutting down furnaces or reducing output by 30 to 40 per cent, disrupting the supply of bottles for beer, pharmaceuticals, and perfumes.

The unfolding crisis underscores the far-reaching economic consequences of geopolitical conflict, as supply chain disruptions in the Middle East continue to strain critical industries in India, with significant implications for public health, manufacturing stability, and economic resilience.