New Delhi: The Union government has set a minimum import price (MIP) for some key pharmaceutical inputs like penicillin G and its salts, 6 APA and amoxicillin.
According to a Directorate General of Foreign Trade (DGFT) notification, the import price for penicillin, a key raw material for antibiotics, is set at ₹2,216 per kg, for amoxicillin import price is fixed at ₹2,733 per kg and ₹3,405 per kg for 6-APA.
Government officials said a decision has been taken to combat low-cost imports from China, which may impact sustainability of domestic producers. However, smaller units in the industry say this decision may impact sustainability of domestic formulation producers.
“The decision has been taken after extensive meetings with industry. Henceforth, import of raw materials will not be allowed below MIP,” said a government official on condition of anonymity. China supplies roughly 70% of raw material consumed by Indian pharmaceutical industry, valued at $10-12 billion. The government had earlier launched a PLI scheme as part of its efforts to reduce India’s dependence on China for raw material and restore local manufacturing.
Price restrictions will stay in place for one year, according to the notification ET has seen. “However, this restriction will not be applicable for import by 100% export-oriented units (EOUs), units in the SEZ and imports under the advance authorisation scheme subject to the condition that imported inputs are not sold in the domestic tariff area (DTA), the notification dated January 29 said.
Several experts view the government’s move on MIP as balancing self-reliance with affordability. “The measure applies only to imports meant for domestic consumption and does not affect exports or re-exports, preserving India’s competitiveness while ensuring a level playing field at home,” said an industry expert.
In November, MIP of ₹1,174 per kg was set for sulphadiazine effective till September 30 next year.
