Govt Plans Minimum Import Price for Key Pharma Ingredients
NEW DELHI: To protect the domestic pharmaceutical industry from cheap Chinese imports, the government is planning to introduce a Minimum Import Price (MIP) on key drug raw materials. This move aims to secure supply chains and support local manufacturers, who say low-cost imports are hurting them.
MIP is a pricing tool—used alongside customs duties—to make imports more expensive. For example, the government already uses it for imported apples.
The proposed MIP would apply to about 10 critical pharmaceutical ingredients, including those used in antibiotics and anti-cholesterol drugs, mostly imported from China. These materials are among the 41 critical components identified under the Production-Linked Incentive (PLI) scheme, which supports domestic manufacturing and reduces import dependence.
This strategy is similar to the government’s approach in the mobile handset sector, also under the PLI scheme, where protection was offered to help local production grow.
Discussions between the industry and the government are ongoing, with a decision expected soon. Experts say that China has been lowering prices aggressively, making imports cheaper than expected and creating pressure on Indian firms. They suggest the MIP should be applied case by case.
However, not everyone supports the move. Some manufacturers of finished drugs warn that higher raw material costs could raise production expenses.
A similar MIP was imposed last year on soda ash, a key input for soaps, detergents, glass, and chemicals—the first such measure in years.
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