The Indian Drug Manufacturers Association (IDMA) has alerted the government of a possible exodus of drug units to excise free zones if it continues to ignore its plea to reduce excise duty on pharma products from 16 to 8 per cent.

The Association informed that despite taking up the issue with the finance minister as well as the finance secretary and revenue secretary, the reduction of this high excise duty does not seem to be in sight and there has been no response from the government.

"The government seems to have ignored the Industry's request, however IDMA would continue its effort to protect the interest of the SSI units in particular," said Daara B Patel, secretary general, IDMA.

However, the Association is now taking help from various State Chief Ministers to take up the issue on behalf of the Industry, as there is already an exodus from states with non-excise free zones to the excise free zones, which would ultimately result in unemployment, unpaid loans and NPAs in states with non-excise free zones.

IDMA has also written to some of the opinion makers and Members of Parliament seeking their support to take up the cause of the Industry. Some of the benefits highlighted by IDMA due to reduction in excise duty from 16 per cent to 8 per cent include reduction in the prices of medicines thereby benefiting the consumers, prevention of migration of companies to excise free zones and very importantly survival of SSIs and mid sized units, the secretary general informed.