In order to alert the government about the possible entry of cheaper Chinese formulations in India, the NIPER, Mohali will soon embark on an intensive debate involving the government and the industry over the issue to devise timely strategies to counter the threat.
According to experts, the cheaper Chinese formulations may pose a major threat to the Indian formulation industry, just as in the case of active pharmaceutical ingredient (API) market which saw several API units shutting shops as they could not compete with the cheaper Chinese products.
According to sources, the NIPER will facilitate a high level meeting between the senior officials in the department of pharmaceuticals, industry and the NIPER soon. The issue was discussed at a meeting recently in which the NIPER director agreed to take up the issue with the government. A meeting of SME Industry, regulatory authority and NIPER was mooted on the issue of Chinese threat.
In the proposed meeting, there would be around 100 participants including senior government officials, captains of industry and NIPER to evaluate the problem in detail and its solutions in time to ensure that the formulation industry does not go the way Indian API industry was lost to China some years back.
According to industry sources, the signals of Chinese interest in formulation industry are already there for everybody to watch. Some Chinese formulation manufacturers have started offering low priced formulations to the Indian market. Some traders dealing in the formulations industry in the country had some time back received offers from Chinese formulation industry quoting much lower price than the market price in India. The list of formulations is an exhaustive one with more than 300 formulations finding a place in it. While for some formulations the Chinese dealers have already quoted the price, others have been left open.
The entry of Chinese formulations in India will pose a major challenge to the units here. Chinese manufacturers will be able to sell their finished products at cheaper prices as raw materials are cheaper in China. Though the effect will be across the board, the small and medium industries will be the most affected.