The Government of Madhya Pradesh has banned the use of vibrating condoms, saying it goes against Indian culture.
The state-run Hindustan Latex Limited (HLL) introduced the item throughout the country about three months ago.
Protesting its launch, Hindu hardliners described the condom was a sex toy going against Indian ethics.
Responding to the protest, the ruling Bharatiya Janata Party (BJP) banned the product.
"We are against anything that harms society. We will not allow it to be sold here. We have written to the Central Government. We are demanding a ban on it," said State Revenue Minister Kamal Patel.
The condom is available at a premium price of Rupees 125 and chemists say the ban is inconsequential.
The company has said it would adhere to government guidelines.
"So far, we have not received any official notification. In case the government does not want us to sell this product in that particular state, we will not do that," said S. Jayaraj, Deputy General Manager, Public Relations, HLL.
Jayaraj said they had launched the product with the aim to promote the use of condoms and arrest the spread of AIDS.
BJP leaders had earlier banned sex education in the state, afraid that the graphics and pictorial descriptions in course material would corrupt innocent minds.