The Indian Drugs Manufacturers Association (IDMA) has urged the union commerce ministry to immediately suspend the 'certification scheme' launched by the ministry for the Ayurveda, Siddha and Unani (ASU) exporters.
The ministry had recently come out with a proposal making the 'certification scheme' mandatory for the ASU exporters. Under the proposal, all the ASU products will be subject to quality control and inspection by Export Inspection Council (EIC), an arm of commerce ministry, before exporting these products.
Terming the proposal a retrograde step totally against the interests of the ASU exporters, IDMA said the government order will create a dual authority for controlling, monitoring and quality of Ayush products which fall within the purview of the Drugs & Cosmetics Act, implementation of which is monitored by the Drugs Controller General of India (DCGI).
"This proposed order will effectively work as a non tariff barrier, unfortunately from our own government and hence we urge immediate suspension of this order, till all Stakeholders' concerns have been addressed", IDMA International Trade Sub-Committee president Dinesh Modi said in a letter tot the ministry.
Since all pharmaceutical manufacturing units, including Ayush, are covered under Drugs and Cosmetics Act and rules there under, these units have to comply with GMP standards for ayurvedic/herbal products as prescribed under Schedule T of the Act. Therefore there is no need to create another authority for control and monitoring of quality of Ayush products, prior to exports, the IDMA contended.
All pharmaceutical exports including Ayush products are subject to product registration and/ or approval of dossiers by the relevant authority (in most cases Ministry of Health) of the importing country. So long as the export products comply with the requirements of importing country, additional inspection and monitoring is a non tariff barrier which is not at all necessary.
Besides, imposition of additional transaction costs which will result from the proposed order for quality inspection and monitoring of Ayush products will adversely affect the competitiveness of their exports from India. Further, Indian industry's competitive disadvantage is enhanced by the exporter friendly policies of our major competitors (in the field of Ayush products) like China, South East Asia, Bangladesh and Pakistan.
The IDMA suggested that the industry is ready and willing for a thorough discussion in this matter and accordingly we request for an open hearing with all stake holders, including the manufacturers and exporters at the earliest convenience, to arrive at a mutually satisfactory resolution of this issue which is vital for the very survival of the exports of Ayush products from India.