Pharma group seeks relaxation of export restrictions for committed orders

A group representing India's pharmaceutical industry has asked the government to relax Tuesday's export restrictions on 26 drugs and active pharmaceutical ingredients (APIs) used in those formulations. 

The Pharmaceutical Export Promotion Council of India (Pharmexcil), which works under the Commerce Ministry, has requested the Director General of Foreign Trade (DGFT) to allow export of drugs manufactured before the goverment notified the restrictions, those meant for exports only and goods lying at ports.

Explaining the concerns and challenges being faced by the exporters in the light of these export restrictions, Pharmexcil director-general Udaya Bhaskar said, "the exporters and manufacturers will face the threat of being blacklisted by the procurement agencies if they fail to honor their export commitments."

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"Most of the manufacturers and exporters have manufactured these listed items before the outbreak of COVID-19 and have planned and committed to ship the consignments to their customers in agreed timelines. The reference notification imposing restriction on the export of the listed items with immediate effect would severely impact our members, as many numbers of consignments are already lined up for export in the warehouses and ports," Bhaskar said.

Citing the potential legal and business backlash that Indian pharma companies and exporters would face from their foreign customers, Bhaskar explained that some of the orders for institutional supplies mandate the supply of all items committed in their contracts. Non-supply of one item would result sometimes in cancellation of the entire order for all other products resulting in the blacklisting of the companies by procurement agencies besides attracting huge penalties.