API cos for policies like anti-dumping duties & MIP

THE Indian API (active pharmaceutical ingredient) companies are now facing the major challenge of continued dumping of APIs by China at unreasonably low prices.

- OUR BUREAU, BENGALURU

It is crucial for the government to implement protective measures, such as a Minimum Import Price (MIP) or anti-dumping duties, to safeguard these strategic investments. Without such interventions, domestic manufacturers face the risk of closure, which would undermine the core objective of the PLI (production linked incentive) scheme.

No doubt the PLI scheme played a pivotal role in rebuilding India's API manufacturing base and reducing import dependence, particularly for critical fermented products such as penicilin-G, clavulanic acid and rifampicin, he added.

But the true measure of success for the PLI scheme should not be a reduction in API prices, but rather a meaningful reduction in import dependence. Both the government and consumers must be prepared to support a slightly higher cost in the short term to ensure long-term self-reliance and security of supply.