Small-time sanitiser makers lose to pharma biggies

The State government had assured quick licences to production units to ensure adequate supply but manufacturers said they were finding it difficult to procure the raw materials.

A city-based chemist said that his firm produced 50-litres of alcohol-based hand sanitisers. But unfortunately, it couldn’t reach the market fearing loss after the government capped the price and included the product under the Essential Commodities Act.

Claiming that his firm could produce up to 1 tonne of hand sanitiser per day, the chemist said, “Firms which used to sell Isopropyl alcohol are now making hand sanitisers and asking us to buy it in bulk.

But that won’t be cost-effective as we will have to then package it in 50 ml, 100ml and 200 ml bottles. The cost would go up after calculating the margin, labelling, bottle and transportation. It is not viable for us to sell under the government norms (Rs 100 for 200 ml),” said Gunasekaran from Tiruverkadu.

He added that the government should lift the cap so that small-time manufacturers could survive in the market. “Further, the government should give us a list of manufactures who sell the raw materials under the price cap,” he said.

“If the government refuses to ease the price cap, manufactures would reduce the quality of the product to meet the cost. As per WHO guidelines, an alcoholic based hand sanitiser should have 70 per cent ethanol. But to meet the cost, manufactures may reduce the alcohol level and add water instead,” the chemist said.

Another city-based manufacturer, Madhan Raj, suggested that the government should distribute the raw materials in facilities like ration shops. Madhan said that suppliers are selling raw materials for a huge margin due to demand.

Only big players can now afford to sell hand sanitiser under the government capping. Manufacturers added that flip-flop bottles for sanitisers used to be Rs 1.50 per piece. But its cost has now increased three-fold.

Speaking to DT Next, K Sivabalan, Director of Tamil Nadu Drug Control Department, said, “There are 47 pharmaceutical companies and 6 distilleries manufacturing hand sanitisers in the State.

The government is taking steps to ease the import restrictions of raw materials and soon the issue will be resolved.”

He added that manufactures have to sell the product according to government capping and it is not acceptable to not sell the stock claiming it is not profitable. “They should work with the government in times of crisis,” he concluded.