Kathmandu. The CEO of Carex, the world’s largest condom maker, has said that the company can increase the price of its products by up to 30 percent if the supply problems due to the Iran war continue.
Malaysian-based company Kerex told Reuters and Bloomberg that production costs have increased significantly since the start of the Iran conflict. Kerex produces more than 5 billion condoms annually. It produces condoms for major brands such as Durex and Trojan and also supplies it to the NHS, Britain’s government health service.
Global oil supplies have been disrupted after Iran threatened to target ships passing through the Strait of Hormuz in response to airstrikes by the US and Israel. The closure of this waterway is also disrupting international supply chains. General oil accounts for about 20 percent of the world’s crude oil and LNG supplies.
Carex relies on oil-based raw materials such as ammonia (used to preserve latex) and silicon-based lubricants.
Demand for condoms is high, supply is low
According to the CEO of Kerex, the demand for condoms has increased by about 30 percent this year. However, rising freight fees and shipping delays are leading to a shortage of condoms. “The need for condoms increases in bad times because of the uncertainty about the future,” he told Bloomberg. People wonder if they have a job. ’
People think, ‘If we have a child now, we’re going to have to bear the cost of someone else.’ ’
The war between the US-Israel and Iran has already shaken up the energy market. Now the condom crisis shows that other things are becoming more expensive for ordinary consumers.
Flights have also become more expensive due to this war. According to new research, cheap economy class tickets have become 24 percent more expensive on average compared to last year.
Similarly, the price of fertilizer has increased due to transportation difficulties from the Gulf region. There is also a shortage of helium used in the manufacture of computer chips. The bottled water industry is also under pressure as companies struggle to get raw materials.
Earlier this month, the United Nations (UAE) warned that the price of sugar, dairy products and fruits would also increase due to rising transportation costs.
There have been conflicting statements from both sides about the agreements amid the Iran war. The status of the peace talks between the US and Iran is unclear. US President Donald Trump has said he will extend the ceasefire until the talks move forward. – From the BBC
