The Hindu Business Line : Chemexcil fears adverse trade effects through Pharmexcil

THE proposed formation of Pharmexcil, a separate export promotion council for pharmaceuticals, would result in adverse effects on the trade in the backdrop of cut-throat foreign competition and trade liberalisation in the post-WTO era, according to Chemexcil, the export promotion council for basic chemicals, pharmaceuticals and cosmetics, set up by the Union Ministry of Commerce.

Talking to newspersons here, the Chemexcil Chairman, Mr Satish W. Wagh, has urged those pharmaceutical industry representatives supporting the formation of Pharmexcil to work under the banner of Chemexcil for strengthening the exports of chemicals and pharmaceuticals.

According to him, "instead of gearing up our efforts in fragmenting the institution for individual product group, a concerted effort should be made to strengthen the existing institution - Chemexcil - which has over the years established its strong presence in the international market."

There were already too many pharmaceutical associations such as the Bulk Drug Manufacturers Association, the Indian Drug Manufacturers Association, the Organisation of Pharmaceutical Producers Association, the Indian Pharmaceutical Association and other pharmaceutical associations in various States across the country, he said.

"The formation of Pharmexcil in addition to these associations would be a sheer duplication of work. This would also add to more confusion in the minds of overseas buyers, resulting retardation in export growth," Mr Wagh said.

Citing the old saying that `too many cooks spoil the broth', Mr Wagh said, "The formation of Pharmexcil would certainly give a wrong signal amongst the international trading community."

Assuring the Chemexcil members belonging to the pharmaceutical industry all the cooperation, he said only the coordinated efforts would enable the pharmaceutical industry to achieve the national target as per the medium term strategy announced by the Union Ministry of Commerce.

Chemexcil's vision presented to the Ministry had projected an export target of Rs 61,000 crore, of which the export of drugs and pharmaceuticals alone would account for Rs 24,000 crore.

The Chairman of Chemexcil's Drugs & Pharmaceuticals Panel, Mr Lalit Kumar Jain, said as against the growth rate of global drugs and pharmaceuticals industry at eight per cent, the Government expected a growth rate of 12 per cent in exports from the domestic pharma industry.

However, with the efforts of Chemexcil, the drugs and pharmaceuticals industry achieved a remarkable growth of 19 per cent in exports, he said.

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