Commerce Ministry not in Favour of Imposing Anti-Dumping Duty on Pen G, 6 APA.

The lingering stalemate over the controversial issue of imposing anti-dumping duty on imports of two pharma raw materials, penicillin G (Pen G) and 6 APA, is more or less over as the union commerce ministry is learnt to have decided not to impose anti-dumping duty on these products.

Though a final decision is yet to be officially announced by the ministry, the ministry is understood to have decided not to impose anti-dumping duty on Pen G and 6 APA in view of the findings of a fact finding team which had visited China some time back to take stock of the situation.

A high level fact finding team, involving senior commerce ministry officials, had visited China to find whether the demand for imposing anti-dumping duty on these products by two Indian companies, Gujarat-based Alembic and Chennai-based SPIC, is justified. After the fact finding mission, the ministry is convinced that there is no need to impose anti-dumping duty on these products as these products are not being dumped into the country and in fact the pricing of these products are real, sources said.

The imposition of anti-dumping duty on Pen G and 6 APA has been a contentious issue between the union commerce ministry and the bulk drug manufacturers in the country and the issue has been hanging fire for quite some time. The commerce ministry, acting on a petition by Alembic and SPIC, had recommended imposition of anti-dumping duty on Pen G and 6 APA, but the industry has been opposing it tooth and nail. Besides industry, union finance ministry had also disagreed with the commerce ministry's proposal.

The bulk drug industry apprehends that the proposed move could create a monopoly like situation in the country since there are only two companies (Alembic and SPIC) making the products in India and would ultimately result in shortage of life saving drugs (antibiotics) in the country. These companies together produce only around 200 MT of 6 APA as against the total demand of around 5000 MT per annum. Also, the production of Penicillin-G by the petitioner companies is only 3500 MMU as against the country's total demand of about 17000 MMU per annum.

The estimated market for the antibiotics made from Pen G, 6 APA is estimated to be Rs.3,000 crore.

Source : pharmabiz.com