The ongoing rise in crude oil prices could soon affect consumer goods in India, notably condom prices. Mankind Pharma, the largest condom manufacturer in the country, has indicated that it may raise prices due to the escalating oil costs linked to geopolitical tensions, particularly the conflict in Iran. The company, which holds approximately 30 per cent of the market share through its Manforce brand, stated that if the current situation persists, customers might see price increases in the near future.

Since the beginning of hostilities in late February, crude oil prices have risen significantly, exceeding 50 per cent, with Brent crude now surpassing $100 per barrel. This spike is reportedly driven by supply chain disruptions, especially in the Strait of Hormuz, affecting availability and costs globally. Mankind Pharma’s CEO, Sheetal Arora, mentioned that while the company has sufficient inventory for the upcoming months, sustained high oil prices could lead to adjustments in their pricing strategy.

This development illustrates the interconnectedness of global events and their implications on everyday products in India. The potential rise in condom prices highlights how external economic factors can affect domestic consumer markets.

Materials Used in Condom Manufacturing

Condoms are primarily made from natural latex, but the production process also involves various petroleum-related materials including lubricants, chemicals, silicone oil, and packaging. Rising crude oil costs directly influence the prices of these essential components, which can lead to increased production costs for manufacturers. As oil prices escalate, manufacturers like Mankind Pharma face mounting pressure to adjust prices accordingly.

Currently, Manforce condoms are priced between Rs 100 and Rs 150 for a pack of ten. Despite Mankind Pharma’s relatively stable quarterly earnings, which reported a modest raw material cost increase of less than 0.5 per cent, the potential for escalating costs remains concerning as supply chain disruptions continue.

Similar challenges are faced globally, as the situation is not confined to India. Other manufacturers, such as Karex—based in Malaysia and recognised as the world’s largest condom producer—have also announced intentions to increase prices by 20 to 30 per cent due to heightened shipping and raw material costs stemming from the ongoing crisis in the Middle East.

Concerns for the Indian Condom Market

India boasts one of the largest condom markets globally, valued between Rs 860 crore and Rs 8,170 crore, with production exceeding 400 crore condoms annually. This includes contributions from state-run HLL Lifecare, which manufactures nearly 221 crore condoms each year, along with private firms like Mankind Pharma and Cupid Limited that cater to both domestic and export demands.

Experts warn that even a slight increase in condom prices could have significant repercussions for lower-income consumers, who are more likely to be affected. Rajeev Jayadevan, a former president of the Indian Medical Association, stated that rising prices could lead to shortages and discourage regular use, resulting in broader public health issues. He cautioned that the downstream effects could include unplanned pregnancies and an increase in maternal and infant mortality rates, alongside a potential rise in sexually transmitted infections.

The current volatility in oil prices, therefore, poses a substantial threat not only to consumer costs but also public health outcomes, indicating the far-reaching implications of geopolitical events on local economies and health initiatives in India.

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