The Indian Drug Manufacturers Association (IDMA) has suggested an alternative to the imposition of anti dumping duty on Penicillin-G imports from China, for which the proposition is under consideration of the Directorate General of Anti-Dumping & Allied Duties, Department of Commerce, with intention to protect the interests of the indigenous Pen-G manufacturers, the formulation industry and the patients.

The association has expressed its strong opposition on the move to the government through a representation submitted to the Ministry of Commerce and Industry. Apart, it has also suggested that the government should consider alternatives like fixing ratio parameters for compulsory purchase of indigenous Pen-G to a certain percentage after assessing the production capacity of the domestic Pen-G manufacturers.

“This will ensure the protection of indigenous manufacturer of Penicillin and also allow convertors of Pencillin based antibiotics to import in certain ration which may reduce the impact on the price,” the association said.

While the whole authority to impose anti dumping duty lies with the Ministry of Commerce and Industry, the government should not only do justice to the indigenous Pen-G manufacturers, but also to the formulators of the Pen-G based antibiotics and the patients, argues the association in a letter to the higher official with the ministry.

“The imposition of anti dumping duty is totally uncalled for considering that there are at least 20 companies manufacturing amoxicillin products alone, which has Pen-G as key ingredient. If the duty is levied, we will see a raise of Rs 400 to 1000 per kilogram of every Pen-G imports. This will definitely create problem for the industry as we relies most on imports of the ingredient to meet market demands,” IDMA president N R Munjal told Pharmabiz.

The association requested the government that the National Pharmaceutical Pricing Authority (NPPA) should make note of the increase in cost due to the anti dumping duty and simultaneously increase the relevant formulation prices to ensure the availability of Pen-G. The ministry should also assess the demand of Pen-G in the country and the manufacturing capacity of indigenous manufacturers of the ingredient prior to any conclusion.

At present, only two companies – the Gujarat-based Alembic Ltd and the Tamil Nadu-based Southern Petro-Chemical Industry Corporation (SPIC) – are manufacturing Pen-G in India. Two other companies – JK Pharma and Torrent Biotech Ltd – have suspended production of the particular betalactum, after the prices crunched owing to the Chinese imports. The prices of indigenous Pen-G is around 10 to 15 per cent higher than the product imported from China, said Munjal.