Pharma machinery industry wants govt to reduce import duty on specific components.

Pharma machinery manufacturers from across the country wants the government to take immediate corrective measures towards reducing the import duty on specific pharma machinery components. This demand comes in the wake of the mounting pressure faced by industry due to high import duties levied on them, leading to unfair competition in the market.

The industry fears that if the situation persist it will lead to slow killing of the industry, which is already struggling to establish a firm footing in the country.  At present, the Indian machinery manufacturers ranging from small to medium scale companies have to pay nearly above 35 per cent as import duty alone, to get specific components required as per the needs of the clients, to India which in turn is affecting the prices of the products as well.

P V Narayana Iyer, secretary general, Institute of Packaging Machinery Manufacturers of India, (IPMMI) pointed out that higher import duty on specific components is leading to rise in the price of the finished products as well, forcing a lot of companies to directly import the whole product rather than just their parts from other countries, leading to loss of business to small and medium scale manufacturers in the country.

“Obviously, when a customer can get the whole finished product in a little over what they are paying for just certain components, feasibility as well as affordability wise they will go prefer going for direct import of the product than just its component. But, this trend has started showing disturbing effect on the business of the Indian manufacturers as they are losing out their business to their foreign counter parts.”

It is understood that some of the components like filler heads etc. which are used in the manufacturing packaging machineries specifically for the pharma and food industries are not made in India. Forcing the Indian companies, manufacturing the same to import it at a higher price which is leading to unfair competition in the market, as they are not able to get any margin out of the sale of these products.

Iyer further stressed that considering the seriousness of this issue, there is an urgent need for the Indian machinery associations and other forum to realise this matter and bring up the issue more vigorously with the higher authority before its too late. He pointed out that off late there has been some slagging in the representation from the industry on various issues which needs to change so that the government is in time impressed upon the concerns and issues faced by this niche but highly potential industry.

Source : pharmabiz.com