Seal of quality for traditional drug exports
The government is planning to set up an export inspection agency for Ayurveda, Unani and Siddha (Ayush) products to put an end to frequent rejection of Indian exports.
By Khomba Singh & Gireesh Chandra Prasad, TNN |
NEW DELHI: The government is planning to set up an export inspection agency for Ayurveda, Unani and Siddha (Ayush) products to put an end to frequent rejection of Indian exports. There have been instances of Indian herbal exports being rejected due to metal toxicity and microbial contamination. China is a dominant player in the global herbal drug market.
The government has also proposed three levels of inspection. The certification fee for level 1 and level 2 is 0.4% and 0.2%, respectively, of the freight on board (FOB), which roughly represent the cost of the export consignment. The fee for the third level has not been finalised.
Pharmaceuticals export promotion council (Pharmexcil) has asked the government not to levy any fee or additional inspection on Ayush products. Pharmexcil chairman DB Mody told ET the industry is grappling with the problems of rupee appreciation and any additional burden would adversely impact Ayush exports.
“The proposed 0.4% tax on FOB would further put Indian companies at a disadvantage against companies from countries such as China. Also, the proposed certification would delay exports by 15-20 days and clients are not going to wait for us,” Mr Mody said.
In a letter to the commerce ministry, Pharmexcil said, “The Indian industry is equipped to manufacture quality medicines at affordable cost and there is no need for additional quality inspection for Ayush products.”
No exact figures are available for the country’s Ayush exports, but the shipments are roughly estimated to be worth around Rs 500 crore.
Some companies, such as Himalaya Herbal Healthcare, which exports Ayush products to over 70 countries, have welcomed the proposal. “The proposal is definitely a positive development. We need a regulatory mechanism to prevent sub-standard products from reaching the international market.
The move will increase the confidence of importers, and subsequently overseas consumers, in Indian herbal healthcare products. There is tremendous potential for growth in this sector and it will be fully realised only if we can ensure strict conformity to quality and safety,” Himalaya’s COO Philipe Haydon said.
However, the government must guarantee “there will be no rejection by the importing countries once the agency certifies these products”, he added.
The government has also proposed three levels of inspection. The certification fee for level 1 and level 2 is 0.4% and 0.2%, respectively, of the freight on board (FOB), which roughly represent the cost of the export consignment. The fee for the third level has not been finalised.
Pharmaceuticals export promotion council (Pharmexcil) has asked the government not to levy any fee or additional inspection on Ayush products. Pharmexcil chairman DB Mody told ET the industry is grappling with the problems of rupee appreciation and any additional burden would adversely impact Ayush exports.
“The proposed 0.4% tax on FOB would further put Indian companies at a disadvantage against companies from countries such as China. Also, the proposed certification would delay exports by 15-20 days and clients are not going to wait for us,” Mr Mody said.
In a letter to the commerce ministry, Pharmexcil said, “The Indian industry is equipped to manufacture quality medicines at affordable cost and there is no need for additional quality inspection for Ayush products.”
No exact figures are available for the country’s Ayush exports, but the shipments are roughly estimated to be worth around Rs 500 crore.
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Since Ayush drugs fall under the purview of the Drugs & Cosmetics Act, 1940, they meet strict manufacturing norms. In addition, on insistence from importing countries, Indian companies also get their products tested by private agencies. Still, many Indian exports continue to face rejections when tests are conducted at the destination.Some companies, such as Himalaya Herbal Healthcare, which exports Ayush products to over 70 countries, have welcomed the proposal. “The proposal is definitely a positive development. We need a regulatory mechanism to prevent sub-standard products from reaching the international market.
The move will increase the confidence of importers, and subsequently overseas consumers, in Indian herbal healthcare products. There is tremendous potential for growth in this sector and it will be fully realised only if we can ensure strict conformity to quality and safety,” Himalaya’s COO Philipe Haydon said.
However, the government must guarantee “there will be no rejection by the importing countries once the agency certifies these products”, he added.
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“There is a variance in the result of tests conducted in laboratories of reputed MNCs in India and the labs abroad. The government must be accountable, if any product approved by them is rejected,” Delhi-based Surya Herbal MD Inder Setia said.Start a SIP with as low as ₹500 with ET Money App!
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