Govt may give sops to drug exports avoiding Europe

The Centre may give sops to drug exporters for shipments to Africa and Latin America through a route that would avoid passing through Europe, while it prepares to drag the EU to the World Trade Organisation (WTO) over seizures of consignments of Indian pharma companies.

The European Union has been seizing Indian generic drugs en route Latin America and Africa citing patent violations.

The Department of Pharmaceuticals has submitted a freight subsidy scheme for exporters to the Commerce Ministry so that they could take alternate routes and avoid transit through Europe, which is a shorter route with better connectivity.

"(The) Ministry of Commerce has agreed with the (subsidy) scheme. I think they will introduce it," Department of Pharmaceuticals Secretary Ashok Kumar told PTI on the sidelines of a FICCI function.

Kumar also said that the government would be taking up the issue of Indian generics drugs seizure by the EU at the WTO.

"We are going to the WTO," Kumar said when asked what the government was doing to help exporters against drugs seizure.

Commenting on the Centre's move, Indian Pharmaceutical Alliance Secretary General D G Shah said: "India should assert the right to free trade and right to passage as per the WTO free trade norms."