India's Condom Sector Hit by Middle East Supply Disruptions

India's condom manufacturing sector, a cornerstone of the country's public health infrastructure, is grappling with severe supply chain disruptions and escalating production costs triggered by escalating tensions in the Middle East. The industry, valued at approximately $860 million and producing between 4 billion and 6.4 billion units annually, faces shortages of critical raw materials like silicone oil and ammonia, essential for stabilizing latex during production. These challenges stem from Iran's closure of the Strait of Hormuz in response to U.S. and Israeli military actions, which has halted shipping routes and forced rerouting around the Cape of Good Hope, adding 15 to 20 days to transit times.

Manufacturers report acute shortages of silicone oil, used as a lubricant, alongside a projected 40 to 50 percent price surge in ammonia. Additional pressures include rising costs for packaging materials such as PVC and aluminum foil, as well as petrochemical derivatives broadly affected by the conflict. Logistics woes compound the issue: global container shortages delay exports, Middle East airspace restrictions reduce air freight capacity, and backlogs accumulate for ready...