Hyderabad, Dec 16 (PTI) Bulk drug manufacturers have supported Centre’s proposed MIP to safeguard domestic producers, saying it should be viewed as a time-bound and calibrated corrective measure and not as a protectionist move.
In a bid to counter cheap imports from China, which has recently slashed prices, the Centre is in the process of introducing a Minimum Import Price (MIP) following sustained predatory pricing and a sharp decline in import prices, which indicate an imminent threat to the viability of domestic manufacturing, sources in the Bulk Drug Manufacturers Association (BDMA) said.
"The industry association therefore strongly supports the proposed MIP framework and urges expeditious consideration to ensure a level playing field and long-term antibiotic security for the country," BDMA sources told PTI.
It is important to note that the proposed MIP does not lead to any increase in medicine prices for patients, as formulation MRPs have remained stable even during periods when API (active pharmaceutical ingredient) prices were higher, they further said.
The proposed MIP levels are fair and reasonable, ensuring no inflationary impact on formulators or consumers, BDMA said.
India’s near-total dependence on a single geography for Penicillin-G and 6-APA imports represents a significant strategic vulnerability, particularly in critical antibiotics.
“Minimum Import Price is a stabilisation tool, not a trade barrier. For critical antibiotic intermediates, it helps ensure India doesn’t lose domestic capability against predatory pricing — something no health-secure nation can afford,” S Subramanian, CFO of Aurobindo Pharma Limited, told PTI.
The country has already witnessed a historic collapse of domestic penicillin capacity once before. Rebuilding the capability has taken decades, along with substantial public and private investment, bulk drug makers said.