Guj pharma exporters seek govt subsidy to implement compulsory barcoding

Centre has provided temporary relief by deferring its decision till July 2014

After the Centre deferred the compulsory barcoding on packaging of pharma products to be exported from the country, local small and medium pharmaceutical exporters are now seeking subsidy to install necessary machines to implement the norm.

More, exporters also feel that the additional time would also help them to impress upon the government about the feasibility issues in the process, and a more amicable solution could be arrived at.

The local small and medium pharmaceutical exporters from Gujarat breathed a sigh of relief as the central government decided to extend the deadline to have compulsory barcoding on the packaging of pharma products to be exported from the country to July, 2014 from July this year.

Kamlesh Patel, ex-chairman of the Indian Drug Manufacturers Association, Gujarat chapter (IDMA) and also the chief executive of West Coast Pharmaceuticals said, "The government decision is very much welcome as it would provide relief to exporters as the task of implementing bar codes on pharma packaging was not only tedious but also quite expensive for small scale manufacturers. Many SMEs were not in a position to install the machinery required to comply to the norm."

He also added that the government directive did not take into account certain practical difficulties.

"In case of big packaging, there is no issue. But, in case of small products like ampules etc, it is difficult to squeeze in a bar code plus the generic and brand name of the medicine, composition of the drug into a small strip," he explained.

A senior official of Pharmaceuticals Export Promotion Council of India (Pharmexcil) felt that the temporary relief granted by the government would enable small exporters to buy time and explain their situation more effectively.

"We will try to seek for a complete exemption as it is difficult for small scale exporters to incur such a high additional cost to comply to the norm, or else they stand to lose their business," he said on grounds of anonymity.

Meanwhile, small and medium exporters from the state, including Saga Laboratories, Yash Medicare, Hindusthan Biosynth among others, feel that a subsidy should be worked out by the Centre for installation of machinery etc to meet the norm.

A senior official at IDMA Gujarat wing said that the Centre has indicated that a subsidy scheme is being worked upon, but nothing is finalised yet.

He also said that "While the intention of the government is to ensure that no counterfeiting can take place and, in turn, build a good brand for Indian pharmaceutical products in terms of quality, it is indeed an uphill task for the small exporter. Also, counterfeiting usually takes place for high value and high volume products, therefore the government's focus should lie there."

Pharma exports from Gujarat is expected to touch Rs 15,000 crore during 2012-13. Of this, around 25 per cent is the share of SMEs.

Overall exports from the state is growing at a rate of 12-13 per cent annually.