The Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) is India's premier export promotion body set up by the Ministry of Commerce in 1963. One of its major objectives is to promote exports of drugs and pharmaceuticals as well as medicinal plants and value added herbal products. With the pharmaceutical industry lobbying for a separate export promotion body for drugs; the future role of Chemexcil is something, which is being actively discussed in recent times. In an interview with Joe C Mathew of Pharmabiz.com, Satish W Wagh, the new Chairman of Chemexcil comes out with his views on the proposed new council and his plans for the Chemexcil. Wagh is heading Mumbai based Supriya Chemicals, a drug manufacturing company.
How do you see the attempts for a separate export promotion council for pharmaceuticals?
At the first place, is there any need for a separate council? All the persons who are now clamouring for a new council were part of
Chemexcil all these years. They never felt the need for a new council when they were heading Chemexcil. Now that their term is over, they need a new council. Its nothing, but politics. More councils are not in the interest of the exporting community and would prove counterproductive.
One should understand that Chemexcil's role in promoting the chemicals and pharmaceuticals sector is going to be there even if a new council comes into existence. Now that there is a separate export promotion council for 100% export oriented units, doesn't prevent an EOU to approach Chemexcil for membership. Similarly, it is the member who has to decide where he should enroll himself. It is known that the proponents of separate export council for pharmaceuticals are asking Rs 50,000 each from pharmaceutical manufacturing companies to raise a corpus amount of Rs 3 crore. One has to wait and see the number of companies that are going to cooperate with such an effort. What would the companies gain out of a new council? Chemexcil is already here to take up their cause. We may not have done well in the past. But that doesn't mean that we cannot perform. We are gearing up to serve the industry. Drug manufacturers have proper representation in the council now. We are working hard in a transparent manner.
Previously, export enquires never reached an ordinary member on time. Today all enquires are posted online immediately and the small-scale export sector can make use of the information. We have about 4,000 members. We cannot differentiate them. Henceforth Chemexcil will not filter the list of members for the potential importers. We will have a facilitating role.
What are the initiatives taken by the new governing body of the council to support its positive intentions?
As part of cleansing the activities of Chemexcil we have ordered an enquiry into the irregularities that happened during the tenure of former chairmen. My immediate predecessor has been issued a charge sheet few weeks ago. He is expected to explain his stand to the council within 15 days. The ministry has appreciated this initiative. We are determined to win back the trust of our members.
Do you plan to make your members aware of the "futility" of the proposed council for pharmaceuticals?
We are in the process of collecting feedback from our members in this regard. We intend to circulate a questionnaire and find out what percentage of our members are interested in yet another council. At the moment, the members are indifferent to all these developments. They don't know where to go. Why should they pay to all councils? Only small players in the industry are in the need for export promotion councils. Why should we thrust more councils upon them?
Comment on Chemexcil's drugs specific strategies. How is the export performance of drugs and pharmaceuticals sector during the current year? What are the projections?
We are participating in pharmaceutical oriented and specific fairs like CPHI, FCE Pharma etc. Arranging buyer-seller meets is another important activity. We are planning to focus on Latin American and South African markets soon. An India International Fair is to be organized in Latin American countries for the benefit of pharma sector. Chemexcil has already submitted Market Access Intiated proposals for generic drugs and anti-retrovirals for countries in Africa, Europe and the United States.
The exports of drugs and pharmaceuticals have shown 27.1% growth during the last year. The exports, which were USD 782.9 million (April-August) during 2001-02 grew to USD 995.0 million in 2002-03.
How successful has been Chemexcil in taking up the major issues of the exporting community?
All major issues are taken up by the council. For instance, imposition of value cap for all drugs and pharmaceuticals was one of the major issues. We were also part of the joint discussions with DGFT, which saw a solution to the problem. Our efforts are evident in the changes made to the Exim policy. We are regularly representing SION fixation, DEPB fixation and also fixation of new molecule DEPB rates. We organize personal hearing of member companies with DGFT as and when required.
Comment on the performance of Ayurvedic/herbal products panel and the plans for boosting exports in this segment.
We have a special interest in the promotion of herbal products. The New Delhi office has been part of all meetings related with herbal products that was jointly organized by National Medicinal Plant Board and APEDA. We have given proposals to the government to initiate setting up of R&D labs for the development of ayurveda in the North East. Our Kolkata regional office will be revamped with a special thrust to help boost the export of herbal products from the Northeastern region.
Chemexcil had entered into an MoU with the Korea Pharmaceutical Traders' Association (KPTA) to take steps towards increasing the trade cooperation between the two countries in the fields of pharmaceuticals and cosmetics. What is the current status of the joint initiative?
The initiative was taken up during the last chairman's tenure. I am yet to follow up the matter.
What are the attempts made by Chemexcil to make other countries recognize Indian Pharmacopoeia?
In 2001 Chemexcil led a delegation to Korea, Philippines, Indonesia and Bangkok where discussions were held with the drug regulatory authorities and Indian exporters at the behest of the council. The Korean authorities have agreed to accept the IP and the matter is being worked out. In the case of Indonesia, a write up on Indian drugs Industry was forwarded to the country and the authorities are trying to understand the potential areas of cooperation. Philippines has agreed for fast track licenses for the member companies of Chemexcil. Thailand has offered to reduce the six months time that is currently taken for registration of drugs from India on a reciprocal basis. The council has taken up this matter with the Drugs Controller of India who has agreed to look into the matter. Chemexcil has also taken up the case of IP recognition with France. Indian Mission is pursuing this matter with the French authorities.
Patenting of natural products and hindering the export chances of such products from the country is becoming a common issue now. What are the steps initiated by Chemexcil to help the exporters with regard to IPR issues?
It is true that patenting of natural products is hindering the exports from the country and the trend is increasing with time. We have taken up the case against US based Sabinsa Corp, which has patented colius. The council has discussed the issue with the USA desk also.