Nipun Jain, CEO, Pharmchem
We are happy to know that the Department of Commerce, Ministry of Commerce & Industry, Government of India has accepted our recommendations and revised the provisions relating to the ‘Market Access Initiative (MAI) Scheme. With the revised provisions, we anticipate that pharma export will grow further. The revised provision has increased, the ceiling of Rs 50 lakh per annum per exporter to Rs 2 crores. The additional components of this revision is plant inspection for the pharma products which have been included in para 4.2 (8) of the MAI Scheme 2018. In most of the countries, plant inspection charges are so high that SMEs pharma companies cannot manage financially to go more than two to three products. To name a few, in Columbia each plant inspection cost will touch nearly $40,000, which small or medium sized pharma companies may not be able to bear it. However, with this provisions, companies can opt for plant inspection and can also introduce multiple products for existing and newer markets.
The another component which have attracted the pharma exporters are the charges incurred by small scale exporters below the f.o.b. Value of exports of Rs 30 crores on bar-coding of export consignments (this would be a one-time grant to defray actual expenditure limited to a maximum of Rs 25 lakh per exporter). This provision will help both small as well as mid-sized pharma companies in implementing bar coding of export consignment. However, we have also made recommendation to the government to consider the renewed registration fee which they have not considered this time but hoping they will re-look into this and make amendments in the coming days.