Ayurvedic cos averse to compulsory barcoding

Ayurvedic drug manufacturers are pressing for exemption from the Union health ministry's proposed barcoding scheme saying that the ayurvedic products exported from the country are mainly nutraceutical products or dietary supplements.

The Directorate General of Foreign Trade (DGFT) is mulling to make barcoding compulsory on medicine packs meant for exports from July 1. The ministry of Commerce decision has come in the wake of allegations from importing countries that some Indian firms are exporting counterfeit or sub-standard products. The ministry hopes that the unique barcoding will help to put in a 'track and trace' system in place for all drugs and pharmaceuticals products.

Chandrakant Bhanusali, secretary general of Ayurvedic Drug Manufacturers Association (ADMA) said, "We have already communicated to the ministry that most of the ayurvedic products exported from the country are either nutraceutical or personal care products, and hence do not exactly fall under the 'drugs and pharmaceuticals' category." IDMA has also reasoned that the barcoding system could also come in conflict with the existing coding systems.

Meanwhile, small scale exporters of pharmaceutical products too feel that timeframe for implementation is challenging.

"The scheme is going to become effective from July 1, and this leaves a window of hardly a couple of months to put the barcoding system in place," said an Ahmedabad based exporter of drugs.

The Indian Drug Manufacturers Association (IDMA) too feels that it is likely to make an impact on exports from SMEs in the short-term. "While pharmaceutical exports from Gujarat grew by 12 per cent in 2010-11, reaching around Rs 11,000 crore, the exports during the July-September quarter of the current fiscal is likely to be impacted as small scale firms will take some time before the barcoding norm could be universally implemented as this will involve investments in machinery as well as manpower.", said Chirag Doshi, secretary, IDMA, Gujarat chapter. Gujarat contributes nearly 28 per cent of national pharmaceutical exports.

He added that the average estimated cost of putting in the barcoding system is around Rs 2-2.5 crore per company.

The net pharmaceutical exports from India is pegged at Rs 40,000 crore during last fiscal, which grew by around 20 per cent.