Pharmaceutical products and related chemicals are no more in Tamil Nadu government's export thrust agenda. Of the seven segments identified by the Tamil Nadu government, which will have the support of the Tamil Nadu Export Guidance Cell for increased exports, pharmaceutical products and related chemicals do not find a place.
Top government officials involved in identifying the segments for export thrust have no answer for ignoring the pharmaceutical segment. However, it is learnt that the Tamil Nadu government has had the fear that most units in the state may not be able to comply with the revised GMP norms and exports from the sector may not be that much so as to warrant closer look from the government.
Surprisingly, this act of the government has come at a time when the Alathur Pharmaceutical Manufacturers' Association (APMA) had requested the government to set up a dedicated export cell for pharmaceutical products. It had earlier requested the government to upgrade the Alathur Pharmaceutical complex to a Pharma Park, on the lines of proposed pharma park at Vizag as announced by the Andhra Pradesh government, so as to enable for increased thrust on exports.
The Tamil Nadu Export Guidance Cell has been recently set up for providing for more thrust to exports. Its role is that of an advisor. It has been set up with the assistance of the Tamil Nadu Industrial Development Corporation (TIDCO). While it will be under the control of TIDCO, it will function as an independent body.
Tamil Nadu boasts of number of formulation manufacturers with a few of them already well set in the field of exports. The state has also the distinction of having the country's only pharmaceutical complex- the Alathur Pharmaceutical Complex- and chemical zone - at Cuddalore. Also, the state boasts of three companies, which are the largest exporters in their category, viz Orchid Chemicals and Pharmaceuticals Ltd, Shasun Drugs and Chemcials Ltd and Medopharm. The last mentioned is the largest exporter of formulation products among the small-scale units. Exports of pharmaceutical products and chemicals from the state for the last fiscal are pegged at Rs.800 crore.
The act of the government in leaving out the pharmaceutical products and chemicals from the export thrust means that the companies in the segment will have to do all the work on their own. Though they can avail of advisory services from the Guidance Cell, the segment would not be the focus of the Cell.
It has come as a dampener to the associations representing the segment. APMA and the Pharmaceutical Manufacturers Association of Tamil Nadu (PMA) have time and again been requesting the state government to provide support to the industry as well as remove anomalies. One of the biggest dampener to the industry came when the state government brought methanol under the Prohibition Act warranting the companies to keep register of stocks of methanol and obtaining permission from the district collector for its usage irrespective of quantity required.
On its part, PMA has gone ahead with involving the association representing the pharmaceutical industry in the states of Kerala, Karnataka, Andhra Pradesh and Goa to form a Federation, which PMA expects to act a catalyst for solving various crisis facing the industry, and help improve business prospects including exports.