A section of the pharmaceutical industry has opposed the move to impose safeguard duty on 6APA and erythromycin, terming that the action would only result in benefit to mere one manufacturer in the country.
Reacting to the media reports on the likely duty on import of 6APA and erythromycin on ground that cheap import from China was harming the interests of the domestic manufacturers, SME Pharma Industries Confederation has asked the pharmaceutical department to take the industry into confidence before taking a final decision in this regard.
"India imports around 1200 tonnes of erythromycin thiocyanate per annum out of which approximately 800 tonnes are exported in the form of erythromycin salts. India also imports around 2000 mmu of penicillin G and around 250 tonnes of 6APA depending on the price of the products. Approximately 3 BOU of penicillin are used to manufacture one kg of 6APA," SPIC pointed out in a letter to the department officials.
"The sole manufacturer Alembic Limited does not have the capacity, quality and costing of both the products to meet the demand of the Indian local market for penicillin and erythromycin. Safeguard duty as a general rule is imposed where three or more manufacturers are there and they should have the capacity, quality of the product to meet the demand. In this case, as there is only one manufacturer, it will lead to monopoly and exploitation by increasing the price of end formulations in the Indian market," the association vice chairman Lalit Kumar Jain said, adding that the move would affect the small and medium pharma sector badly.
A number of companies like Torrent Gujarat Biotec and JK Pharmachem had discontinued manufacturing of penicillin over the last few years following the import of the same from China, media reports said. The commerce ministry has sought the views of the industry after some drug manufacturers urged the government to intervene to protect the local firms against the import, report said.