US-Iran War: US-Iran conflict has been one of the most heated news across the nations and many countries has been directly and indirectly impacted by this war. From economy to resources, everything has an impact. Now coming to India, there was a huge impact on LPG right after the war between Iran and US. Now the impact is on Condoms, another basic essential.
How US-Iran War Is Impacting Indian Market
India is heavily dependent on middle east for imports of many resources. Especially on Strait of Hormuz which is a critical global shipping route. This has impacted a steady supply of cooking gas and fuel earlier.
India produces around 400 crore units of condoms every year, and now, with the halt of resource imports from the middle east. This is a 8000 crore rupees worth. Manufacturing condoms requires two most important things silicone oil and that is used as a lubricant and ammonia is essential for stabilising latex. And also the prices of ammonia are set to rise by 40–50%. Which is an addition to that rising costs of packaging materials like PVC and aluminium foil.
An official from a condom company recently spoke, ”supply constraints and price volatility in key inputs have impacted production 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”.