Union Commerce Ministry is planning to help the pharmaceutical exporters by setting up common warehouse facilities in some foreign countries so that small and medium scale drug makers can cut down on their expenses.

The Ministry has already gathered inputs from the industry on the possible steps to help the exporters, as part of the Brand India Pharma campaign. One of the difficulties faced by the SMEs was huge expenditure on using warehouse facilities abroad.

Accordingly, the department has firmed up plans to open warehouses facilities in some key markets, especially in the African countries, through the Pharmaceutical Exports Promotion Council of India (Pharmexcil). Depending on the success of the first one, the government will help Pharmexcil to open more warehouses in countries like Japan in the next phase, sources in the Ministry informed.

The industry has also submitted its views on wide ranging issues regarding the customs, non-tariff barriers, patents, counterfeit drugs, bank loans, registration of products abroad etc. Based on the inputs, country-specific strategies are being worked out by the authorities.

Pharamexcil is opening the first overseas warehouse in Nigeria, a key market for Indian exporters, Nipun Jain, SME Panel chief of Pharmexcil, said while confirming it. The agency had already identified the place checked the land in the African country. “By using the warehouse of the Government, SMEs will be able to save upto 75 per cent of their rent expenditures and thereby improve the export performance,” he pointed out.

The first overseas warehouse, expected to be ready in a couple of months, will give 75 per cent, 50 per cent and 33 per cent subsidies for three years respectively. It will have facilities for APIs, formulations and other pharma products.

India is the biggest source for pharmaceutical products in Nigeria. The pharma exports to this African country have grown over 30 per cent in the recent past. The two countries signed a memorandum of understanding on Cooperation in Pharmaceutical Sector in March 2011.