"It has been more than 10 days since the companies have stopped supplying medicines to Manipur," said S. Singh, a chemist in Imphal.
"Stocks of almost all life-saving drugs have dried up."
Police said they were investigating the extortion threat.
"No one has lodged a formal complaint... But we're acting on our own," said senior police official Clay Khongsai.
Local pharmaceutical firm representatives said they dared not approach the police or resume supplying the market.
"Militants in Manipur are capable of doing anything," said one frightened wholesaler, who asked not to be identified. "No one is willing to take the risk."
Manipur is home to about 19 rebel groups with demands ranging from independence to greater autonomy, but police said it was unclear which group was behind the extortion demand.
Source-AFP
JAY/B