Even after the central government came out with a clear directive making Pharmaceuticals Export Promotion Council (Pharmexcil) the sole authority to issue Registration Cum Membership Certificates (RCMC) to drug exporters of the country, the Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) is in no mood to disband its pharma panel.
Instead, the Chemexcil is planning to fight back against the 'unilateral' decision of the Central Government (public notice No 61 dated 16th March) to deny the rights of 2000 plus drug exporters enrolled with its pharma panel to choose the council of their choice. The 'agitated' members of Chemexcil are in the process of filing writ petitions in courts across the country challenging this public notice, says Satish Wagh, chairman Chemexcil.
Speaking to Pharmabiz.com, Wagh said that the council has already made formal representations before the Union Commerce Minister, Commerce Secretary, Union Chemicals and Fertilizers Minister, Director General of Foreign Trade (DGFT) among others and is in the process of reversing the ministry's decision.
"How can the DGFT come out with a notification contrary to its own notification that was issued just 45 days back?" He asks. The earlier notification had reserved the members' choice to remain with either of the councils.
The Chemexcil has informed the DGFT that there are 2100 members who have renewed their membership up to March 2005 and their RCMC is valid for a period of five years. They are also known to have requested DGFT to allow those members who have renewed their membership subscription upto 31st March 2005 to continue with Chemexcil till their RCMC is valid and avail all export promotion assistance for the purpose of export promotion such as DEPB, MDA, etc through Chemexcil.
According to Lalit Kumar Jain, chairman, Pharma Panel, Chemexcil, the government should consider the export promotional activities carried out by Chemexcil before it hands over the responsibilities carried out by his panel to the new council. "We have been very much active in drug export promotional activities during the current year. The number of delegations we have led and exhibitions we have participated are proof of the leadership role performed by Chemexcil," he said.
In a strongly worded appeal to Ram Vilas Paswan, Union Chemicals and Fertilizers Minister, Wagh and Jain have asked for immediate withdrawal of the DGFT notice "for restoring the fundamental right of choice to specially small scale pharmaceutical exporter". They allege that Pharmexcil is led by a nominated committee representing the influential large-scale industrialists while Chemexcil has its members drawn from the SSI sector who are in need for export promotion support.
According to Wagh, the programmes of Pharmexcil is aimed at the regions where SSI cannot penetrate due to the stringent regulatory norms whereas Chemexcil is trying to explore those markets that can be the right choice for the SSI sector.
According to industry sources, the ambiguity would continue unless the government gives specific directive on the fate of the pharma panel of Chemexcil in clear terms.