Pharma industry seeks govt intervention to control export of Ossein, to overcome gelatine shortage.

Indian pharma industry thinks that only the Union government can find a solution to the current shortfall of gelatine required for the production of hard and soft gel capsules in the country. This can be done by controlling the export of Ossein which is a semi-finished product of gelatin by levying export duty.

The European Commission has recently announced new norms for countries coming under the World Organization for Animal Health's (OIE), reporting the least threat categories for bovine spongiform encephalopathy (BSE).

As India is now categorized as a safe source from the point of view of BSE (bovine spongiform encephalopathy), this has resulted in an increase in the exports of crushed bones or Ossein, than value-added products like gelatin, gelatin capsules or finished formulations from India.

Instead of allowing export of semi finished products like Ossein, India can earn much higher foreign exchange and value-add for its local resources if it encourages export of finished products like capsules, or finished formulations,stated sources.

Crushed Animal bones are put through a purification process for a period of 45-60 days and the resultant product is Ossein. This manufacturing process generates lot of effluent and hence most of the developed countries like Europe, US and Japan have put restrictions on this activity.

Ossein is melted and dried through a process of low temperature freezing to form gelatine, which is a much cleaner manufacturing process and is completed in controlled hygienic conditions. For instance animal crushed bones are exported at around Rs.35/- per kg. Ossein is exported at Rs.200 per kg, Gelatine is exported at Rs.400 per kg, capsules can fetch about Rs.1000 per kg of gelatin. Further a large quantity of capsules are also exported in the form of finished formulation by the Indian pharma industries, wherein the value addition will still be higher, accounting for the conversion charges from capsules to finished formulation, stated the sources.

Pharmabiz had earlier reported that pharma companies importing gelatine have been forced to cut down their global trade orders because of the massive rise in international prices and depreciation of Indian Rupee since the last few months. In order to meet the requirements, pharma companies are now purchasing it from the domestic market at higher prices.

The unforeseen predicament in gelatine shortage which impacted the industry has been unfavourable for the Indian pharma industry. If the crisis continues pharma formulation companies will need to look at alternative drug delivery options and avoid using gelatine completely, stated the sources.

Source : pharmabiz.com