SII fails to deliver, New Delhi’s vaccine diplomacy hits hurdle

India’s vaccine diplomacy may be running into rough weather.

A recent letter from Serum Institute (SII) to at least three countries saying it would not be able to supply in the coming months vaccines that these nations have already paid for has raised concerns among many others about the criteria being used to supply overseas buyers. There is growing disquiet among countries that have been promised vaccines but are yet to receive them.

SII chief Adar Poonawalla wrote to Brazil, Morocco and Saudi Arabia that there would be an unspecified delay in sending vaccines that have already been bought. Brazil has received 4 million vaccine doses out of the 20 million ordered. Morocco, among the earliest off the mark having signed a supply contract for 20 million doses back in August 2020, has only received 7 million. Saudi Arabia has bought 20 million doses and received 3 million.

“… SII had recently signed additional agreements with governments outside the scope of its original sub-license agreement with AstraZeneca. To meet these additional supply commitments, we commenced the expansion of our manufacturing facilities. Regrettably, a fire at one of our buildings has caused obstacles to the expansion of our monthly manufacturing output... “under these circumstances supply to you cannot be guaranteed in the foreseeable months..”,” SII said to the head of the Fiocruz Institute, Brazil, invoking ‘force majeure’. Similar letters were sent to the immunisation authorities in Morocco and Saudi Arabia earlier this month.

The trouble is, none of these countries, nor others waiting in queue, buy this argument.

Poonawalla had categorically stated that the fire in January would not affect vaccine production because the fire was in an under-construction building. Addressing a press conference soon after the incident, Poonawalla had said, “... The fire has no impact on the production of the Covishield vaccine and no damage has occurred to the existing stock either.”

There is growing dissatisfaction that commercial deals with countries who had already paid for the vaccines was not being honoured. “This is becoming a political problem,” said diplomatic sources.

Brazil has an average daily death toll close to 3,000. They have taken 4 million vaccines from China as well, to meet the growing demand. Brazil’s own vaccine production is expected to kick in only around May. Morocco plans to vaccinate most of its people with the SII-Covishield vaccine, but now finds the pipeline dry, bringing their immunisation program to a halt.

Saudi Arabia, one of India’s close strategic partners is also host to almost two million Indian expatriates. Saudi Arabia has received 3 million doses with no word about the next tranche. Foreign minister Jaishankar has gone on record to thank Saudi Arabia and other Gulf countries for looking after Indian expats during the pandemic lockdowns in 2020. These countries believe its payback time, with vaccines.

There is a broad understanding of the fact that India herself has to inoculate a huge number of people, even if the current pace of vaccination is much slower than expected. In February, Poonawalla tweeted SII had been asked by the Indian government to prioritise India’s demand, so others would have to wait.