With India curbing the supply of raw materials for dozens of drugs, the prices of essential medicines are likely to increase in Nepal.

India, the global supplier of generic drugs, which has already slapped a ban on the supply of surgical masks, gloves and other health safety equipment in Nepal, had decided to restrict the supply of 26 pharmaceutical ingredients, including finished products, a few days ago.

"We cannot supply some essential medicines at their current prices as the price of raw materials has increased several times," Deepak Dahal, chairman of the Association of Pharmaceutical Producers of Nepal, told the Post.

"We have also notified the Department of Drug Administration about the problems of the manufacturing companies and their need for a price increase."

The administration, which is also the national regulatory body of drugs, had fixed the maximum retail prices of 96 essential medicines about 10 years ago. Drug manufacturing companies cannot increase the prices on their own. They have to notify the administration and seek its approval.

Due to the spread of coronavirus in China and the halted supply of raw materials, India has restricted the supply of essential medicines, including paracetamol.

Antibiotics like tinidazole, erythromycin and some vitamins, besides oral rehydration solution, are the other products restricted by India. China accounted for 67.56 percent of India's total imports of bulk drugs and drug intermediates in 2018-19, according to The Economic Times.

Dahal said that there are sufficient finished medicines for one-and-a-half months in the market and the manufacturing companies have the raw materials enough to supply drugs for the next couple of months.

"The price of US dollar was Rs62 and the prices of the raw materials ranged between $2 to $3 at the time the MRP was fixed," Dahal added. "Now the dollar's price has risen to Rs 117, and the prices of raw materials have risen to up to $9. We have proposed an increase of around 50 percent in the prices of essential medicines."

Narayan Dhakal, director general at the Department of Drug Administration, said that the association of drug manufacturing companies had requested his office to increase the price of medicines.

"Drug manufacturing companies cannot raise the price of essential medicines on their own," Dhakal told the Post. "But that does not mean the prices of medicines will not increase. We have to consider the condition in which the manufacturing companies could not produce essential medicines."

The drug advisory committee under the administration, which comprised representatives of drug manufacturing companies, has endorsed the price increase, but the DDA director has not given his approval, according to the association.

Santosh Sharma, the department spokesperson, however, said that a meeting of the committee had not been held recently. "The upcoming meeting of the committee will decide, whether or not to increase the prices of essential medicines."

The drug manufacturing companies have informed the department that they have sufficient raw materials for two months, said Sharma.