Over 650 drugmakers want the government to immediately increase prices of 33 bulk drugs - or else. The drugmakers say that they are incurring losses at the current prices due to increased cost of bulk drugs and the decline of the rupee against dollar. Without a price hike, the drugmakers are threatening to stop manufacturing several meds within a month or two, The Economic Times reports.

The National Pharmaceutical Pricing Authority reduced prices by up to 10 percent in March when the rupee sharply appreciated against dollar, arguing the cost of importing bulk drugs dropped considerably. But the Indian Drug Manufacturer’s Association, which reps over 650 drugmakers, points out that since March, the rupee has depreciated by around 6 percent.

Several manufacturers have to pay more for imported bulk intermediates as well as customs duties, which means heavy losses for drugmakers who are already reeling under the low margins allowed on bulk drugs, according to IDMA president BN Singh.

The IDMA says that if NPPA did not immediately increase prices of 33 bulk drugs, there will be an acute shortage, because drugmakers cannot buy additional bulk drugs at the price capped by the regulator. According to IDMA secretary general Daara Patel, drugmakers will be able to sell the drugs at the existing price until existing stocks last.

Drugmakers have their hands tied because, pricing laws permit price hikes on drugs of up to 10 percent in 12 months for those drugs outside price control. The prices of the drugs are capped by NPPA. And as crude oil prices risel, there is a domino effect on all bulk drugs derived from petro chemicals. There is already a shortage of intermediates in India and worldwide.