DGFT amends export policy for APIs
Altering its export policy for APIs, the Directorate General of Foreign Trade (DGFT) on Monday removed the export restrictions on 24 active pharmaceutical ingredients (API) and formulations. This modification on export of APIs such as vitamins B1, B6 and B12, tinidazole, metronidazole, acyclovir, progesterone and chloramphenicol, comes a month after imposing them in the wake of the Covid-19 outbreak. The outbound shipments of paracetamol and its formulations, though, still continue to remain restricted or need a license from the government to get exported.
On 3rd March, the export curb was imposed due to the lockdown in China’s Hubei’s province, a major source for these raw materials that has also been the epicentre of the coronavirus outbreak. Indian exporters had raised concern that besides blacklisting of the companies by the procurement agencies abroad and imposition of penalties, non-supply of even one item could result in the cancellation of the order for all products. Ironically, API formulations manufactured for exports as per specific country requirements cannot be diverted or utilised in the domestic market.