Pharma boost: Tougher Chinese import norms helpful in long run

THE Centre’s move to impose a minimum import price on key drug ingredients is a fresh strategy to combat the dumping of cheap Chinese imports and support domestic manufacturing. Having a floor price below which these pharmaceutical inputs cannot be imported may result in cost increase defeating the affordable drug pricing campaign, but the larger goal is noteworthy. A level-playing field for local producers can boost self-reliance, end the dependency on Chinese imports and secure supply chains for antibiotics and cholesterol drugs. In the long run, such safeguards against predatory price cuts by suppliers and a possible breakdown in supplies can pay dividends, provided the domestic industry gets its act together. Its track record on maintaining the prescribed quality standards fails to infuse confidence.

The targeted raw materials in the new import regime are part of the Union government’s product-linked incentive scheme. The onus is now on the pharma sector on how to make the best use of the policy. The industry associations must ensure that the small and medium units don’t lose out, and in the process resort to short-cuts that have already spawned a culture of neglect and indifference — leading to fatal consequences in several instances. In an industry that demands utmost responsibility at every stage of production, the performance of several units continues to test the efficacy of the regulatory framework.

Systemic resilience is already under strain as many of the registered small and medium units face a shutdown for failing to comply with guidelines on the revised Schedule M of good manufacturing practices by December 31. The demand to extend the deadline underscores the crisis India’s pharma sector faces — how to ensure quality despite the numerous odds. Here’s where the government’s tough stance and simultaneous handholding are most needed.