In a move intended to do away with the exclusive areas of operation earmarked for each export promotion council, the ministry of commerce has deleted the portion specifying the areas of interest of each council from the Appendix 27 of the Foreign Trade Procedures.
The Public Notice No 49 /2004-09 issued by the ministry on January 24, 2005, has passed on the onus of choosing the EPCs to the exporters themselves. The decision, if not reversed, would have its impact on Pharmexcil and Chemexcil, the two councils who are currently issuing Registration-cum-Membership Certificate (RCMC) to drugs and pharmaceutical exporters.
While the Chemexcil lauded the ministry decision, Pharmexcil has expressed its unhappiness over the new development.
The portion that has been deleted from the Appendix 27 through the new public notice had been of vital interest to Pharmexcil as it had virtually granted sole responsibility of promoting exports of the entire range of allopathic and ayurvedic drugs to it. The role of Chemexcil was confined to products other than drugs and pharmaceuticals listed in categories like Dyes and Dye intermediates, Inorganic, Organic and Agro chemicals, Cosmetics and Toiletries, Castor oil and its derivatives and Agarbattis.
As per the earlier Appendix 27, Pharmexcil was to take care of Drugs and Pharmaceuticals including intermediaries, herbal, ayurvedic, unani and homeopathic medicines, Biotech and biological products, Diagnostics, surgicals, nutraceuticals, pharma industry related services, collaborative research, contract manufacturing and clinical trials and consultancy operations.
The amended version is silent on the responsibilities of the council and leaves it to the exporter to declare his main line of business in his application to the export promotion council relating to that line of business. However, the Appendix does not specify the line of business of each council as it did last time thereby leaving it deliberately vague.
Terming the development as unfortunate, D B Modi, chairman, Pharmexcil, said that the decision had created confusion among the Indian High Commissions in several countries. "The High Commissions are now in doubt as to whom they should forward their proposals to. There has to be a clarity at the earliest," he said.
"The minister has already taken note of the development and is known to have telephonically instructed the ministry that he prefers only one export promotion body (pharmexcil) for drugs and pharmaceuticals. He is to be back in office in a couple of days and we expect a clarification in a week's time," he added.
Reacting to Pharmabiz queries, Lalit Kumar Jain, chairman, Pharma Panel, Chemexcil, informed that the changes were made due to the persistent efforts of Chemexcil. "We had been protesting against the government decision to transfer the entire pharma related responsibilities to Pharmexcil as it never had the mandate of the exporters. Majority of our members in the pharma panel continue to be with us even after the formation of pharmexcil and we need to take care of their interests," he said.
Countering Chemexcil claims, Mody said that industry associations like Indian Drugs Manufacturers Association (IDMA), Indian Pharmaceutical Alliance (IPA) and Organisation of Pharmaceutical Producers of India (OPPI) are supporting Pharmexcil and pharmexcil members contribute to 90 per cent of drug exports from the country. "We may be having less numbers, but 90 per cent of the drug exports come from our members. We have no problem if the merchant exporters remain with Chemexcil, but the government should realise that the new council has the backing of entire pharmaceutical manufacturer exporters of the country," he claimed.
Interestingly, both the councils have been actively organising programmes related to pharmaceutical sector. While Pharmexcil had led the drug exporters in a business exploratory trip to CIS countries, Chemexcil had represented drug industry in CPhl Brussles recently. Chemexcil is also known to be planning an INDO-CIS Heath Summit soon. Both the councils were seen organising buyer seller meets in various parts of the country in recent past.
However, the latest development has proved that the councils are yet to consider co-existence as an option.