The pharmaceutical industry in the country has demanded to the Union government to extend further the Focus Market Scheme to some of the CIS countries, Latin American countries and Caribbean countries. The industry has also demanded to the government to delete the para 3.9 (2.2) of the scheme, which does not allow the exporters to have trans-shipment.

The pharma industry's concerns were voiced to the Union Commerce and Industry Minister Kamal Nath and Minister of State for Commerce and Industry Jairam Ramesh, at a meeting held in New Delhi on March 7. After hearing the concerns of the industries, the government is to announce the Exim Policy on April 2, 2007.

Apart from Union Ministers, several senior government officials, industry captains and export council members took part in the meeting held in New Delhi.

The Focus Market Scheme was introduced by the Central government in the Annual Supplement to the Foreign Trade Policy, announced on April 7, 2006. One of the important conditions under the scheme was that only exports made through direct shipping lines would be eligible for benefits while exports made through transshipment are not eligible for entitlement under the Scheme.

Driving home the pharma industry's concerns, Pharmaceutical Export Promotion Council chairman Dinesh Modi, who also participated in the meeting, said that this is a big constraint for the exporters there are no direct shipping lines to many of the countries notified for the scheme. And in case of some counties like Mauritius, with just one direct line, the charges tend to be so high that it neutralizes the benefits under the scheme. He contended that the government should allow benefits for exports carried out through transshipment also under the scheme as these are some of the potential markets for Indian exporters.

The objective of the Focus Market Scheme was to offset the high freight cost and other disabilities to certain select international markets with a view to enhance the country's competitiveness to these countries. This scheme allows duty credit facility at 2.5 per cent of the free-on-board value of exports of all products to the notified countries.

The scheme is especially good for the small players in the industry who does not have the competence and wherewithal to export their products to the developed and developing countries where the competition is cut-throat.

In the list of countries notified by the government, Latin American Countries of Argentina, Bolivia, Chile, Ecuador, Paraguay, Peru, Uruguay and Venezuela, and 49 countries of African qualify for benefits under the Focus Market scheme. The list of African block included Angola, Botswana, Burundi, Cameroon, Mauritius and Zimbabwe.