MUMBAI, April 27: Several domestic drug companies have sought government support in ensuring a level playing field in the area of life-saving formulations. The domestic industry claims that while such locally-manufactured formulations attract excise duty, imports of these drugs are allowed virtually duty-free. Life saving formulations affected by this allegedly importer-friendly policy include doxorubicin, azathioprine, iohexol, nitroglycerine, dobutamine and methotrexate.Industry sources say that while life-saving formulations manufactured within the country attract a basic excise duty of 15 per cent, similar drugs of the same bulk actives, by being granted exemption from duty, can be imported virtually duty-free.
This exemption, sources point out, is extended even to the countervailing duty (CVD), thereby giving the importer a significant advantage over the domestic manufacturer. "The government appears to be encouraging imports at the cost of the domestic industry. Given that industry is not in thebest of health, proactive measures to spur growth must be initiated," sources said.
Industry experts point out that methotrexate-based formulations made by a host of local players like Biddle Sawyer (now part of Glaxo India), Dabur (brand Zexate), Elder Pharmaceuticals (brand Trixilem) and BDH (brand Cytorex) face an excise levy while the imported version comes into the country virtually duty-free.
In the case of formulations based on carbidopa with levodopa, the local drug makers include Torrent (brand Tidomet), Intas (LCD) and Biddle Sawyer (Parkimet). The imported formulation in this category is Sinemet of Merind.Domestic formulators of such life-saving drugs have urged the government to limit the exemption from import duty to the basic duty while ensuring that such imports attract a countervailing duty. Alternatively, life-saving formulations when exempted from customs duty, should also be exempted from the excise levy.
Experts also add that the government must look into the problems of the bulkdrug industry on a priority basis. Over 100 bulk drug units in the country are facing the threat of closure due to increased competition from imports and pricing constraints. Experts say that the National Pharmaceutical Pricing Authority (NPPA) should consider total decontrol of bulk drug prices (probably except for those in the restricted or negative list) if it really wants to revive this industry. This, would not only attract new investment in bulk drugs but also allow exporters to quote a better price, they added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
