Pharmexcil plans warehouse in Nigeria to boost trade to Africa

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) is mulling to establish a warehouse in Nigeria to encourage export business of small- and medium-sized drug companies to African countries, a top official said today.
PV Appaji, Director General of Pharmexcil, which is under the Ministry of Commerce, also said the Andhra Pradesh government has allotted three acres of land for setting up World Pharma Trade Centre in Hyderabad.
"For export promotion councils can operate warehouse under the Market Access Initiative (MAI) by Commerce Ministry. They can set up warehouse at any required country. To begin with, we are proposing to set up in Nigeria," Appaji told PTI.

According to him, whoever avails of the warehouse facility operated by the Pharmexcil, some portion of the rent will be reimbursed for three years.
"The scheme allows us to give subsidies on warehouse rent to the extent of 75 per cent, 50 per cent and 33 per cent respectively for three years," he said.
Nigeria happens to be the second largest pharma market for India in Africa and also strategically located in the continent thus proving to be ideal place for a warehouse, Appaji added.

He said Indian exports to Africa constitute 16 per cent of the total Rs 80,000 crore pharma exports and expected to boost further with MAI.

Last year, a team of officials from Indian government visited the African nation and identified a location for the warehouse.
"We are getting responses from our members on the issue. Based on the feedback we will request the government for necessary permissions. We are examining all possibilities like warehouse with duty-paid or pre-duty. We will come out with all details in a week," he explained.