The Central government has kept in abeyance the controversial decision to impose anti-dumping duty on imports of two pharmaceutical raw materials, penicillin G (Pen G) and 6-Aminopenicillanic Acid (6 APA), it is learnt.

According to reliable sources, after assessing the likely impact of anti-dumping duty on imports of Pen G and 6 APA, the Department of Pharmaceuticals (DoP) has put off the plan for some time. The imposition of anti-dumping duty on these products was expected to result in an increase of 25 per cent in the prices of several life saving drugs using these raw materials. The decision to delay imposing the dumping duty on these materials is subsequent to a number of representations by various industry organizations, including Bulk Drugs Manufacturers Association (BDMA).

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 involved in the production of Pen G and 6 APA in India, manufacture only five per cent of the total requirement. BDMA, which opposes the imposition of anti-dumping duty on these two raw materials, alleged that local companies are not able to manufacture even five per cent of the total requirement.

It said that if the ban is imposed, it will be killing of 40-50 companies for protecting one or two companies. The BDMA also alleged that on the one side the government is trying to reduce and control the prices of drugs but on the other it is increasing the prices of raw materials.

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 filed by Vadodara-based Alembic and Chennai-based SPIC. The industry organizations, lead by BDMA opposed it tooth and nail. The organization took the issue to central government and the finance ministry also came in favour of them by opposing the commerce ministry’s move. They already have several rounds of meetings with the finance and commerce ministries.