Indian Drug Manufacturers Association Wants Anti-dumping Duty to Fend off Chinese Competition Close.

MUMBAI: The Indian Drug Manufacturers Association (IDMA) today urged the government to impose anti-dumping duties to counter unhealthy competition from China and also sought issuing of stringent inspection norms.

"Unhealthy competition from China is eroding the growth of active pharmaceutical ingredient (APIs) manufactured in the country. China gives many benefits to its manufacturers, which reduces overall prices of their products. They also get funding support from the government at low interest rates," Idma president-elect Manish Doshi told reporters here.

Doshi has also urged the government to issue stringent inspection norms and impose anti-dumping duties wherever necessary.

"We would also like it to set up dedicated APIs and basic chemicals fund of USD 700 million to help small and large API manufacturers," Doshi said.

In its golden jubilee year, the association has prioritised several issues of immediate concern to the industry for which it has initiated active dialogues with the government.

The association's demands include barcoding to be made mandatory for exporters, wants the government to allow 100 percent FDI in the industry and direct all M&A proposals in the field to the Competition Commission and easy passage of Indian generic drugs to the Japanese market.

The government recently announced a six-month extension of its original deadline for all drug products destined for export to carry mandatory barcoding.

"We would like the government to give serious consideration to providing financial assistance to help companies, especially SMEs, to cover the extra investment costs needed to comply with these requirements. These extra burden includes a 20 percent productivity loss and increased monthly costs to the tune of Rs 20,000 in additional registration expenses and Rs 100,000 for barcoding accessories such as inks," outgoing IDMA president N R Munjal said.

The association has also called for freezing the prices of drugs under DPCO for one year instead of the proposed two years.

Source : economictimes.indiatimes.com