The central government and its departments related to the pharmaceutical sector have stepped up their efforts to identify reasons for the decline in the growth rate of pharma exports reported in the first three quarters of the financial year 2009-10, it is learnt.

Pharma exports recorded a growth rate of only 10 to 15 per cent in the first three quarters of 2009-10, when compared to the 29 per cent growth recorded in 2008-09 as per the data from the Directorate General of Commercial Intelligence & Statistics (DGCI&S) and Centre for Monitoring Indian Economy (CMIE). The growth rate of over 29 per cent was recorded in 2009-10, compared to the growth rate of pharma exports in same period of the previous year.

The Department of Pharmaceuticals (DoP), under the central Ministry of Chemicals and Fertilisers, has assigned the Pharmaceutical Exports Promotion Council (Pharmexcil) to conduct thorough and extensive discussions with the top pharma exporters in the country, in order to find out the reasons of the decline in exports and to submit suggestions to improve exports.

The council has conducted a brainstorming session with the top management of the top 20 pharma exporting firms in the country in Hyderabad in mid April, according to Pharmexcil sources. A similar meeting will be held at Mumbai on April 19, and the council will submit its report soon.

“The department has requested us to find out the reasons for the comparative decline in pharma exports. This is part of the council's efforts to understand any problem related to exports and to support the industry to come out with better results in the area,” said Dr P V Appaji. However, he said that the situation has improved, of late, and not that alarming at the stage while the efforts shows the commitment of the council and the DoP to study on each issues with the sector for better growth of the industry.

Primarily due to global recession in 2008, there was a decline in inventory supplies for the industry leading them incapable to meet the size of orders which they used to commit earlier. Further, there were also a decline in contract manufacturing and research services (CRAMS) business offered by the domestic firms.

However, after first few meetings, the council comments that the companies, in general, are comfortable with their current exports business and does not find major downfall in this area. Pharmexcil, also, does not have the authority to summon the exports details from pharma companies, and could rely only on the information shared by the companies on goodwill.

Though a report was submitted by the council, earlier, by contacting the top companies indirectly, the DoP has asked the council to meet the top executives of all the major pharma exporting firms and to submit a detailed report as early as possible.

“The companies say that they are comfortable with the exports business at present. Of course, we cannot rely on the intermediate results as it may change in the reports in the end of the financial year. But the current figures do not tally with the claims of the firms and some exporters are facing trouble,” said Appaji.