12 + Years experience in Global Pharmaceutical Business - EU, Emerging market Ex- Zydus ,MSN, Aurobindo, Hetero
API production in India, China's drug (including API and intermediate products) cartel has been broken in the last six months. Perhaps China did not realise that India would revive its pharmaceutical industry in such a big way, so it had built additional capacity with a view to capture the pharmaceutical industry of the world. Now due to high capacity, the supply of APIs in China has increased significantly and the reduction in prices is an obvious outcome. Now that APIs are being produced in large quantities in the country, the falling prices of APIs are indicative of the same. But the government will have to be cautious that the industries that have been re-built due to PLIs, do not fall victims of dumping by China again. The biggest apprehension of the entrepreneurs who have invested under the PLI scheme was about this only. Since China has a large excess capacity, China can again resort to dumping of its APIs in India. The Indian government, while being vigilant, will have to make every possible effort to stop dumping in the field of APIs by China. This applies not only in the case of APIs but also in the field of other chemicals. According to experts of the chemical industry, two Indian companies named United Phosphorus Limited (UPL) and Hindustan Chemical Limited (HCL) have set up plants at a cost of ₹500 crore with the aim of self-sufficiency in ‘Sodium Cyanide’ in the country. But since these plants have been set up, China, European Union, Japan and South Korea has started using their economic muscles to reduce the landed price of Sodium Cyanide, despite increase in their production cost. This is making production by UPL and HCL economically unviable. Director General of Trade Remedies (DGTR) of Ministry of Commerce and Industry, has proposed anti-dumping duty on imports from China and European Union. But the process of getting such relief for the industry is long and tedious, the country needs to create an expert intelligence agency in the field of international trade so that any such situation of unethical trade practice by foreign countries and their businesses, can be dealt with successfully. #activeingredients #api #chineseAPI
Pharmaceutical International Expert in Global supply chain and Emerging market Business developer.
8moAnti dumping duty on steel was introduced to protect Indian industry also . Similarly a lot other products . EXCIPIENTS like MCC , povidone too gets lot resistance from China for Indian players like sigachi etc . India shall not deter trade relation with China just for penicillin.Aurobindo infact had lot agreement with China earlier . Trade war should be amicably settled not by just PLI.