The Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) has approached the union commerce ministry to reverse the exclusive rights given to Pharmaceutical Export Promotion Council (Pharmexcil) for issuing Registration Cum Membership Certificate (RCMC) to drug exporters. The attempt is to convince the ministry on the need for the co-existence of both the councils. The ministry is known to have sought Chemexcil's suggestion to sort out the operational problems by de-linking the activities of the councils and offer exclusive areas for each council.

The issue has taken a serious turn after pharmaceutical exporters, who have retained their memberships with Chemexcil, started complaining of difficulties in obtaining necessary clearances from Customs authorities and the office of the Directorate General of Foreign Trade (DGFT). If the arguments made before the union commerce minister is any indication, the recent public notice have started affecting the export activities of Chemexcil members. "After the DGFT public notice, excise people are not issuing us bonds to clear imported goods and are asking for RCMC from Pharmexcil. Advance licenses are also not issued. The exports are suffering," members of Chemexcil delegation said. The Chemexcil delegation has asked the ministry for a reversal of the notification for enabling their members to choose the council of their choice for obtaining RCMC.

According to Chemexcil members, they would be preferring to continue their relationship with the council for all existing services. "Pharmexcil can be given the exclusive rights to promote emerging sectors in pharmaceutical sciences. Knowledge exports could be an area where Pharmexcil can prove its competency. There is no rationale in creating a new council just to do the same activities that have been carried out by Chemexcil for years together," they said. The members also point out that Chemexcil has offices spread across the country, which enables it to offer speedy services to its members.
The minister is known to be weighing different options before taking any decision.

The Chemexcil also informed the ministry that there are 2100 members who are willing to continue with them.

In a separate move, the Chemexcil Employees Association (CEA) has appealed to the MPs that the DGFT notification is threatening their jobs. According to their complaint, the administrative expenses (which include the employees salary etc) are incurred from the membership fees collected from the members. "Due to the above notification, 2441 members of Pharma Panel have to become member of Pharmexcil which will affect the Chemexcil adversely, losing the membership fee of approximately Rs 75 lakhs plus Rs 15 lakhs of new members. Thus it will not be possible for Chemexcil even to make the payment of the salary of its staff," A T Nagrare, general secretary, CEA said.