U.S.-Iran Conflict Drives Up Costs For India’s Condom Industry

India’s condom manufacturing sector, valued at $860 million, is facing rising production costs and supply chain uncertainties due to the ongoing conflict in West Asia, which has disrupted the flow of critical raw materials.

Industry stakeholders report shortages of key petrochemical inputs and sharp price increases, putting pressure on major manufacturers across the country.

India produces more than 400 crore condoms annually, with leading players such as HLL Lifecare Ltd, Mankind Pharma Ltd, and Cupid Ltd now grappling with higher input costs and limited availability of essential materials.

HLL Lifecare, a government-owned company, alone accounts for about 221 crore condoms per year.

Condom production relies heavily on two critical inputs: silicone oil, used as a lubricant, and ammonia, which stabilises raw latex.

Silicone oil is currently in short supply, while ammonia prices are projected to surge by 40 to 50 per cent. Packaging materials, including PVC foil and aluminium foil, have also become significantly more expensive, adding further pressure on production costs.

An official from a major condom manufacturing firm told The Indian Express that supply constraints and price volatility in key inputs have already affected production schedules and order execution.

“A price increase of 40–50 per cent is expected for ammonia, which is essential for condom production. There has been a significant rise in the price of silicone oil, leading to uncertainty in the market,” the official said.

Logistics challenges stemming from the regional conflict have compounded the problem, slowing down the movement of materials and increasing overall expenses.

Jatish N Sheth of the Karnataka Drugs and Pharmaceuticals Manufacturers Association acknowledged the widespread impact across related sectors.

“We are definitely impacted, but we need to assess the extent and depth of the impact on the industry,” he said.

The situation is expected to worsen as the Indian government prioritises certain key sectors amid the global disruptions.

During an inter-ministerial briefing on March 11, officials indicated that petrochemical units could face up to a 35 per cent reduction in resource allocation, which would further constrain the supply of raw materials needed for condom production.

The West Asia conflict has already caused ripple effects across multiple Indian industries dependent on petrochemicals and reliable shipping routes.

For the condom sector, which plays a vital role in public health and family planning programmes, any sustained increase in costs could eventually translate into higher prices for consumers or reduced supply.

Manufacturers are now closely monitoring the situation and exploring alternative sourcing options, though short-term relief appears limited given the scale of the disruptions.