Govt To Set Minimum Import Price On Pharma Inputs To Counter Cheap Chinese Imports

(MENAFN- KNN India) New Delhi, July 23 (KNN) In a move to protect India's pharmaceutical sector from the growing influx of low-cost Chinese imports, the government is planning to impose a Minimum Import Price (MIP) on select critical drug raw materials - including active pharmaceutical ingredients (APIs) and drug intermediates - official sources told TOI.

The proposed measure is designed to protect domestic manufacturers and ensure supply chain security, as global trade faces increasing disruptions due to evolving geopolitical tensions.

Around 10 key pharmaceutical raw materials-including components for antibiotics and anti-cholesterol medications-are under consideration for MIP imposition.

These components are also part of the 41 critical inputs identified under the Production-Linked Incentive (PLI) scheme, aimed at boosting domestic production and reducing import dependency.

MIP serves as a policy tool to set a price floor on imports, making excessively cheap foreign goods more expensive in the Indian market. This would act in addition to existing customs duties.

A similar model has been implemented for products like apples and, more recently, soda ash-a raw material used in glass, soaps, and chemicals.

Government and industry discussions are ongoing, and a final decision is expected soon, sources told TOI.

The move mirrors earlier government interventions in sectors like mobile handset manufacturing, where PLI incentives and import protections were used to allow local production ecosystems to mature.

However, the proposal has sparked a debate within the pharmaceutical ecosystem.

Manufacturers of finished formulations have expressed concern that higher prices for imported inputs could increase production costs, thereby impacting competitiveness.

Industry experts argue that China's pricing strategy, particularly in the last two years, has led to predatory pricing, undercutting Indian manufacturers.

If implemented, the MIP on pharmaceutical inputs would mark a significant policy shift.

(KNN Bureau)

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