Low value imports of drugs from China have seriously affected the bulk drug manufacturing sector in India and this has forced India to impose anti-dumping duty measures on some bulk drug imports from China, according to Indian authorities.
Replying to a question on this from Raj Kumar Dhoot, Member of Parliament, B K Handique, Minister of State for Chemicals & Petrochemicals, Government of India, informed the Rajya Sabha recently that Indian manufactures of drugs like paracetamol, analgin, ciprofloxacin (groups), metronidazole and diclofenac sodium etc. have been seriously affected by imports from China.
Besides this, one of the reasons of closure of the public sector plant of Indian Drugs & Pharmaceuticals Ltd.at Rishikesh manufacturing penicillin G, ampicillin, amoxycillin, tetracycline and oxytetracycline and their Hyderabad plant manufacturing vitamin B1, vitamin B2, folic acid, chloroquine phosphate and alpha methyl dopa were due to cheaper imports of these drugs from China. The public sector plant of Hindustan Antibiotics Ltd., manufacturing penicillin has also been closed because of the same reason, the minister informed.
He said the Chinese bulk drugs are cheaper when compared to Indian products because of economies of scale, tariffs of power and tax structure etc. The Government of India has been giving some protection by levying anti-dumping duties. The Directorate General Anti Dumping under Ministry of Commerce & Industry initiates proceeding wherever complaints are received by them of such dumping, and if proved, levy anti- dumping duties. Beside this, registration for all imports of bulk drugs is compulsory with Drug Controller General (India) under the Foreign Trade Policy. Further, the Government is contemplating to revive IDPL and HAL, the minister informed Rajya Sabha.