The Central government may not impose anti-dumping duty on the imports of two pharmaceutical raw materials, penicillin G (Pen G) and 6 APA, it is learnt. The decision of the government is likely to be announced shortly.

According to reliable sources, the government is not likely to impose anti-dumping duty on these products as it will have an adverse impact on the country’s pharmaceutical industry. Earlier the government had kept in abeyance the decision to impose duty on the import of these two products. If the anti-dumping duty was imposed on these products, it would have caused an increase of 25 percentage in the prices of several life saving drugs using these materials, sources said.

Sources said that at present the pharmaceutical industry in the country requires 20000 million BOUs of penicillin G and more than 1000 tones of 6 APA. But the companies, which are engaged in the production of Pen G and 6 APA in India, manufacture only five per cent of the total requirement. Earlier the Bulk Drugs Manufacturers Association (BDMA), which was opposing the imposition of anti-dumping duty on these two raw materials, had taken up the issue with the Central government. It had said that if the ban is imposed, it will be killing of 40-50 companies for protecting one or two companies.

The controversy over the anti-dumping duty on Pen G and 6 APA started with the commerce ministry’s decision to impose a ban on these products on a petition by Vadodara-based Alembic and Chennai-based SPIC. The pharma companies led by BDMA opposed it tooth and nail. The association has represented the issue to Central government and the finance ministry also came in favour of them by opposing the commerce ministry’s move. It had several rounds of discussions with the Central government on the issue.