The contentious issue of implementation of barcodes on pharma exports will now be resolved by the Madras High Court as the union commerce ministry has rejected the industry's plea for the withdrawal of the implementation of the scheme.

“The government will not change its policy on the implementation of the barcode on export of pharma packs. There is no question of changing the policy as it is a well thought-out policy that was framed in the interest of the industry,” additional secretary in the union commerce ministry Rajiv Kher said unequivocally.

The additional secretary's assertion on the issue is significant as the pharma industry had recently sought the intervention of the commerce minister Anand Sharma to withdraw the implementation of barcodes on pharma exports on the plea that it was impracticable, both economically as well as logistically, to implement the scheme at all levels of packaging - primary, secondary and tertiary. The industry also said that barcode is neither practical nor possible and also not necessary as it is not the ideal solution for tracking spurious or fake drugs.

The skirmishes between the commerce ministry and the industry on barcode issue started on January 10 last year when the ministry issued a notification under which the trace and track technology was made compulsory for tertiary level packaging from October 1 last year and that on secondary level packaging was to become effective from January 1, 2012 and on primary packaging it was to become effective from July 1, 2012. The barcode scheme is being introduced by the commerce ministry for tracking and tracing pharma products to check the spread of spurious and fake drugs in the market.

But, there was stiff resistance from the industry to the commerce ministry's decision. Ever since the ministry rolled out its plans, the industry has literally been on warpath against the ministry's decision. In fact, the industry has been running from pillar to post to convince the commerce ministry officials to see reason as they argued that the implementation of barcoding on secondary level packaging will entail a string of regulatory, technical as well as cost issues which will harm the pharma exporters in the country.

But, as the industry's repeated pleas to defer the barcode implementation fell on the deaf ears of the officials of the commerce ministry, the industry moved court as a last resort.

Hearing the petitions filed by industry bodies like CIPI and IDMA, the Madras High Court on December 19, 2011 ordered to maintain status quo on the issue of implementation of barcoding for exporters in the country. While the court is yet to deliver its final order on the issue, the ministry has subsequently deferred the implementation of the second and third phase of barcode implementation.

According to the latest notification of the ministry, the trace and track technology for secondary level packaging will come into effect from January 1, 2013 and on primary level packaging will come into effect from July 1, 2013.