India’s factories are running low on key chemicals, and the ripple effects are hitting everything from pharma to textiles. You might have heard headlines about price spikes or delayed shipments, but the real story is about the supply chain gaps that are leaving manufacturers scrambling. Let’s break down the main reasons behind the shortage, see who feels the pain the most, and look at practical ways businesses can keep moving forward.
First off, global raw material prices have jumped since 2022. Petro‑chemical feedstocks, which form the base for many industrial chemicals, are more expensive because of higher oil costs and limited refinery capacity. Add to that a series of COVID‑era lockdowns that left container ships docked for weeks, and you have a perfect storm of delayed imports.
On the domestic side, India’s own production plants are facing tighter environmental regulations. New emission standards forced several small and mid‑size chemical units to shut down or cut output until they can upgrade. Those plants used to supply local markets at lower cost, so their absence pushes buyers toward pricier imports.
Pharmaceutical companies are at the front line. Active ingredients and solvents that are essential for drug formulation are now costing 15‑30% more, and some specialty chemicals are simply unavailable. That translates to higher medicine prices for patients.
The textile sector isn’t far behind. Dyes and finishing agents are scarce, causing production delays and prompting factories to look for alternative colors or even switch to different fabrics. Smaller garment makers report lost orders because they can’t meet buyer timelines.
Even the HVAC equipment market feels the heat. Heat exchangers, refrigerant gases, and insulation foams rely on specific chemicals that are now back‑ordered. When a plant can’t get the right refrigerant, it can’t ship a finished air‑conditioning unit, which impacts both exporters and local dealers.
First, map out the chemicals that are most critical to your production line. Knowing the exact items that could halt operations helps you focus on the right substitutes or backup suppliers.
Second, explore local sourcing options even if they cost a bit more. A domestic supplier might have a smaller batch but can deliver faster, reducing downtime. Building a relationship with a local vendor also gives you leverage when negotiating price adjustments.
Third, stick to a safety stock strategy. Aim for a 30‑45 day buffer for the top five chemicals you use most. While this means tying up more capital, it can save you from emergency rush orders that cost double the price.
Finally, keep an eye on government policies. The Ministry of Chemicals and Fertilizers often announces incentive schemes for expanding domestic production. Tapping into those programs can give you access to new sources before the market tightens further.
Shortages won’t disappear overnight, but staying aware of the root causes and taking practical steps can keep your business running smoother than you might expect. Keep checking the market, stay flexible with suppliers, and you’ll be better positioned to ride out the next wave of chemical supply challenges.
Explore which chemicals are facing shortages in India in 2025, why it matters for industry, and what manufacturers are doing to adapt and survive the crisis.
View More
