First Kitchen, Now Bedroom? India's Condom Industry Feels Heat Of US-Iran Conflict

Last Updated:April 01, 2026, 06:24 IST

The manufacture of condoms relies heavily on two critical inputs: silicone oil (used as a lubricant) and ammonia (essential for stabilising latex).

The ripple effects of the ongoing US-Israel-Iran war in the Gulf region are now impacting an unlikely sector – India’s Rs 8,000 crore worth condom manufacturing industry.

According to a report by The Indian Express, disruptions in petrochemical supply chains have triggered shortages of key raw materials, affecting the country’s condom manufacturing sector that produces over 400 crore units annually.

What’s Affecting The Sector?

The manufacture of condoms relies heavily on two critical inputs: silicone oil (used as a lubricant) and ammonia (essential for stabilising latex). As per the report, manufacturers are facing a severe shortage of silicone oil, causing massive market uncertainty.

On the other hand, prices of ammonia are expected to rise by 40–50%. Add to that rising costs of packaging materials like PVC and aluminium foil, and manufacturers are dealing with a full-blown cost crunch.

Companies Feeling The Strain

Major players, including state-run HLL Lifecare Ltd, which produces approximately 221 crore condoms annually, Mankind Pharma Ltd, and Cupid Ltd, are all currently grappling with the supply chain shock.

An official from a condom manufacturing firm told the news outlet that supply constraints and price volatility in key inputs have impacted production and order execution.

Logistics disruptions have contributed to the challenges, he added.

“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," added the official.

The situation may tighten further as the government prioritises petrochemical resources for critical sectors. Officials have indicated that petrochemical units could face up to a 35% reduction in allocation, potentially squeezing supply for industries like condom manufacturing.

Experts say the impact is broader. Jatish N Sheth from the Karnataka Drugs and Pharmaceuticals Manufacturers Association told The Indian Express that any sector dependent on petrochemicals is likely to be affected. “We are definitely impacted, but we need to assess the extent and depth of the impact on the industry," he said.

A Social Concern

Industry insiders warn that the crisis is not just a business challenge but also a potential social risk.

India’s condom market operates on a high-volume, low-cost model to ensure affordability for its population. Rising costs could push prices up, leading to reduced usage.

“This has translated directly into pressure on the bottom line. While forced price increases may boost revenue, they will likely decrease sales numbers," an industry source said.

Given the product’s role in family planning and population control, even a small dip in usage could have long-term implications.

As tensions in West Asia continue, the effects are being felt far beyond traditional sectors like oil and energy. The strain on India’s condom industry highlights how global conflicts can disrupt everyday products and essential supply chains.

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