Distressed by the government action of disallowing imports of raw materials under the chemical or generic name through inland container depots of Delhi and Hyderabad, the industry associations and Pharmexcil have urged the Centre to restore status quo.
Pharmaceuticals Export Promotion Council (Pharmexcil), in a strong letter to the Central Board of Exercise and Customs, came down heavily on the move to withdraw the facilities enjoyed by the pharmaceutical companies in the Delhi and Hyderabad regions for several years and cautioned that it would have a definite bearing on the export performance of the country this year.
Meanwhile, the pharmaceutical industry associations have launched mutual deliberations to take up the matter concertedly with the authorities and would be meeting the concerned officials, said Lalit Kumar Jain of the Confederation of Indian Pharmaceutical Industry.
A letter by Pharmexcil said, the drug manufacturers in Delhi and Hyderabad regions contributed considerably in the gross drugs exports and they depended on the ICDs for import and export purposes.
"This sudden decision without consulting stakeholders like Pharmexcil and other organizations have resulted in serious setback to the committed efforts of exports who have ordered imports through container deports. This is likely to hamper the export performance of the country this year, '' the letter said, urging the authorities to reconsider the decision and restore status quo.
"Drug exporters import raw material at international prices without duties under the advance licence scheme, convert them into the required products like bulk drugs and formulations and export them as per international market requirements,'' Pharmexcil executive director Dr VP Appaji said.
The export promotion body said, the move came as a setback as the Pharmexcil was trying hard to achieve the targeted 30 per cent growth in exports. It urged the authorities to give enough time to the manufacturers before clamping the decision and it should be only after discussions with the stakeholders.
As reported by Pharmabiz, the Centre had issued a customs instruction recently, removing the names of Delhi, Hyderabad and Ahmedabad ICDs from the list of places in respect of drugs under the chemical or generic name being imported by sea into the country.
Chennai, Kolkota, Mumbai, Kochin, Nhava Sheva and Kandla would be the only seaports to import drug materials, as per the instruction.