Iran War Triggers Polypropylene Crisis: India Faces Medical Device Shortage

The Indian medical device industry is currently navigating a perfect storm of geopolitical instability and domestic resource constraints that threatens to destabilize the nation’s healthcare delivery system. At the heart of the crisis is a dramatic surge in the price of polypropylene (PP), a fundamental thermoplastic polymer essential for the production of high-volume medical consumables including syringes, IV bags, catheters, and surgical drapes. As the conflict involving Iran escalates, the global supply chain for petroleum-based polymers has tightened, sending shockwaves through international logistics corridors that link India to Middle Eastern suppliers.

Industry experts report that polypropylene prices have climbed by more than ₹55 per kilogram since December, but the situation reached a breaking point in early March 2026. Within a mere 10 to 12 days, the cost of plastic raw materials spiked by an unprecedented 25% to 35%. Himanshu Baid, Managing Director of Polymedicure, noted that even during the height of the COVID-19 pandemic, the industry did not witness this level of price volatility or perceived price gouging. This rapid inflation is particularly devastating for India's medical device landscape, where small and medium enterprises (SMEs) constitute approximately 90% of the manufacturing base. These smaller players lack the capital reserves or long-term hedging contracts necessary to absorb such extreme cost fluctuations, leading to fears of widespread production halts.

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Within a mere 10 to 12 days, the cost of plastic raw materials spiked by an unprecedented 25% to 35%.

Compounding the raw material crisis is a sudden tightening of domestic energy supplies. Adani Total Gas has initiated a gas rationing program, informing manufacturers that they will receive only up to 40% of their daily contracted quantity. Any consumption exceeding this threshold is being classified as 'excess gas' and subjected to significantly higher premium rates. For manufacturers of energy-intensive products like syringes, this dual pressure—rising material costs and penalized energy consumption—creates an unsustainable operating environment. The rationing effectively forces producers to choose between operating at a loss or drastically scaling back output at a time when healthcare demand remains constant.