Pharmexcil has decided to set up a warehousing facility for various pharmaceutical products exported to Moscow, it is learnt. Preliminary discussions between Pharmexcil and senior officials of the Commerce ministry were held some time back.

The Council will be shortly submitting a detailed proposal in this regard to the ministry after receiving information related to requirements from individual exporters across the country.

The Commerce ministry under the market access initiative (MAI) scheme offers subsidised warehouse facilities for storage of exported products to different countries. Under the scheme, the government provides assistance at 75 per cent, 50 per cent and 25 per cent of leasing/rental charges in the first, second and third year respectively with a ceiling of Rs 5 million for each market/product per annum.

Dr PV Appaji, executive director of Pharmexcil told Pharmabiz that the Council will hire the premises, and the Ministry of Commerce will provide assistance up to 75 per cent of the cost of storage and the remaining 25 per cent will have to be borne by individual pharma companies using the storage area.

Russia is one among the top five export destinations for Indian pharmaceutical industry and this initiative will help all the pharmaceutical exporters. India's export of drugs, pharmaceuticals and fine chemicals to Russia during 2002-03 accounted for Rs 517.65 crore. The exports rose to Rs 643.10 crore in 2003-04 and further to Rs 723.05 crores in 2004-05, he added.

With more than 143 million consumers, the Russian Federation is one of the world's biggest market with enormous opportunities for foreign pharmaceutical companies seeking to overseas expansion. The pharmaceutical sector in Russia is expanding rapidly. From Euros 3.48 billion in 2001 the market is expected to touch Euros 5.96 billion in 2007. The predicted 15-20 per cent annual growth and the sector's adaptation to western standards offer great potential for Indian companies.

Pharmexcil has sought for industry inputs on the storage area required, suitable location to set up the warehouse in Moscow, value of exports to Russia during last two years, types of products requiring warehouse facility etc. Pharmexcil is aiming to facilitate warehouse facility to the Indian pharmaceutical industry within next three months, at Moscow, Dr Appaji added.