India to explore pharma export potentials to Iran in the backdrop of recent UN sanctions.

India is planning to explore and exploit the opportunities to export more pharmaceutical products to Iran as the country is facing acute shortage of medicinal products due to recent sanctions imposed by United Nations Security Council.

In view of this, the union commerce ministry has directed the Pharmaceutical Export Promotion Council of India (Pharmexcil) to take a business delegation to Tehran from December 17 to 19, 2012.

With the active support of Indian embassy in Tehran, the council is confident of making this tour a success. The proposed delegation is being undertaken under the government’s marketing development activity (MDA) scheme which is expected to receive a formal approval very soon from the ministry.

If one looks at the Indian pharmaceutical exports statistics to Iran during the past three years, the Indian bulk drug exports have seen a decrease of $8 million from $69 million in 2009-10 to $61 million in the year 2010-11. For the year 2011-12 the bulk drug exports have recorded a slight increase of $1 million.

In formulations, though the exports have gained an increase of $ 6 million from $45 million in 2009-10 to $51 million in 2010-11, the subsequent year of 2011-12 had seen a steep decline of $36 million.

Overall during the past three years the pharmaceutical exports to Iran have been affected and had decreased in value from $112.86 in 2009-10 to $98.81 in the year 2011-12.

The main reason for the dip in exports can be attribute to the sanctions of the UN against Iran. After the UN Security Council ratified a sanctions resolution against Iran on June 9, 2010, the United States and the European Union have further imposed unilateral sanctions against the Islamic Republic over its nuclear programme, mostly targeting the country's energy and banking sectors.

Because of the ambiguity and uncertainty due to sanctions, many of the exporters fear that their payments may get blocked since all international transactions will take place in dollar terms.

Tightening the pressure of sanctions on Iran, USA and EU have also urged other countries not to carry out trade relations with Iran; because of this many countries are reluctant to carry out business operations with Iran which is causing strains to its healthcare and pharmaceutical sectors.

Recently the US had also tried to influence India to withhold trade relations with Iran, but as India is a sovereign and democratic country, it has decided to stand by Iran’s side defying US pressure and both India and Iran have agreed to carry out their business transactions in Rupee terms instead of dollar.

Currently, Iran’s pharma market is valued at US$ 3.2 billion, of which $1.78 billion constitute for generics and $1.13 billion constitute for patented drugs.  About $0.36 billion is said to constitute the Over the Counter (OTC) drugs markets in Iran.

In view of the export potential available in Iran currently due to imposition of sanctions by UN, the Pharmexcil is planning to gain from the available opportunity and inviting applications from members to participate in the delegation.


Source : pharmabiz.com