All major antibiotics, which account for about 60 per cent of the Rs 35,000-crore domestic medicine sales, will become expensive if prices of these imported intermediates continue to rise, industry sources say.

Sources say the price of ciprofloxacin bulk drug, the raw material that is used to manufacture the commonly-used antibiotic, has gone up 47 per cent in just three months. "A kilogram of ciprofloxacin is costing Rs 1,400 per kg as against Rs 950 per kg three months ago," said an industry source.

Similarly, the price of azithromycin has gone up from Rs 4,300 per kg to Rs 5,900 per kg in a short span of time. Amoxycillin, another fast-selling antibiotic which now costs Rs 2,150 per kg, was available for Rs 1,450 per kg two-three months ago, they said.

India depends on Chinese imports for raw materials for common antibiotics.

"Almost 90 per cent of our bulk-drug requirement is met through imports. The increase in prices of Chinese bulk drugs has affected almost every drug segment, including vitamin E and betalactum. The closure of several bulk drug units in China due to recently-introduced environmental norms and other manufacturing specifications are the reasons for the price increase," says an industrialist.

The industry also cites withdrawal of several export incentives to Chinese firms as one of the reasons.

The companies say they are operating on thin margins due to the competitive nature of the market representing these therapeutic areas and will be compelled to go for a price hike.

Interestingly, medicine is among the few segments that have not witnessed significant price increases despite raging inflation in the country in recent months.