Supply chain disruptions have reportedly led to shortages of silicone oil and ammonia needed to produce contraceptives

India’s massive condom industry is facing major disruptions due to material shortages and soaring production costs linked to the ongoing war in the Middle East, local media reports, citing manufacturers.

India produces over 6 billion condoms annually in a high-volume, low-margin market worth $860 million. The sector relies heavily on supplies of silicone oil and ammonia, which stabilize raw latex.

Since Iran closed the Strait of Hormuz to most ships in response to US and Israeli airstrikes, supply chains for petrochemical-based materials have been disrupted, leading to a “huge shortage” of silicone oil and a projected 40-50% price surge for ammonia, according to industry officials quoted by the Indian Express.

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Pharmacies in major cities such as Mumbai and New Delhi are already reportedly facing stock shortages.

India produced 6.4 billion condoms in 2024, accounting for nearly 17% of global output, according to IndexBox data.

The oil crisis has also prompted hikes in aviation fuel prices for airlines, India’s Ministry of Petroleum and Natural Gas said on Wednesday. Fuel prices are expected to double to a record $2,224 as of April 1, it said, adding that domestic carriers will face a staggered increase, while foreign companies will have to pay the full market price.