NEW DELHI: Fearing shortage of medicines amid concerns of the Coronavirus outbreak turning into a pandemic, the Centre on Tuesday has placed export restrictions on 26 pharma ingredients and drugs including the over-the-counter paracetamol.
According to a notification by the Directorate General of Foreign Trade (DGFT), the restricted list includes Paracetamol, common antibiotics such as Tinidazole, Metronidazole, and vitamins B1, B6, B 12 ingredients.
With this, export of formulations and active pharmaceutical ingredients (APIs will now require licence from DGFT, an arm of the commerce ministry). "Export of specified APIs and formulations made from these APIs...is restricted with immediate effect and till further orders," the DGFT said.
APIs, also known as bulk drugs, are the key raw material used for making medicines. For instance, paracetamol is the API for Crocin. India, the world’s largest maker of generic drugs, depends on China - the epicentre of the Coronavirus outbreak - for nearly 70 per cent of its requirement of API but exports only a limited quantity of pharma ingredients.
While industry representatives of drug firms say India has enough stocks of API for about 2-3 months, the move assumes significance as the country doesn’t want to face shortage if supply disruption persists for longer than expected. India’s API imports stand at USD 3.5 billion per year.
Of this, around 70 per cent worth $2.5 billion, comes from China. Exports of API however, was worth about USD 225 million last year. In February, a panel formed by the Department of Pharmaceuticals reviewed 54 drugs and found out of these 34 have no alternative.
Amid new Coronavirus cases emerging in India, the government had also called a series of meetings and suggested the pharma industry to locally produce at least 38 drug raw materials that are covered under the National List of Essential Medicines to end the country’s dependence on Chinese imports for them.
"...however, it is still a suggestion and not an imposition to start production of the specified APIs," said an official, part of the meeting. The restrictions boosted pharma stocks with NSE Nifty Pharma Index gaining 5.12 per cent, making it the best sectoral performer for the day.
API imports stand at USD 3.5 billion per year
India’s API imports stand at $3.5 billion per year. Of this, around 70 per cent worth $2.5 billion, comes from China. Exports of API however, was worth about $225 million last year. Further, industry representatives of drug firms say India has enough stocks of API for 2-3 months