Chinese imports held at ports to soon hit Indian pharma companies

Industry

ET Now Digital

Updated Jun 29, 2020 | 17:08 IST

As Chinese consignments continue to face heavy scrutiny at Indian ports, key pharmaceutical raw materials are being held up which may lead to a disruption in manufacture of life-saving drugs domestically

Chinese imports held at ports to soon hit Indian pharma companies | Photo Credit: Thinkstock

Key Highlights

Delay in clearances by customs officials have hindered the supply of pharma raw materials which is beginning to hurt domestic production

This delay might cause disruption in manufacture of key life-saving drugs during Covid-19 pandemic

New Delhi: Chinese consignments being held at Indian ports by custom authorities may soon come to haunt the pharmaceutical industry creating shortages and increasing costs during the pandemic.

Chinese consignments containing crucial medical equipment such as pulse oximeters, infrared thermometers, which are needed by hospitals during Covid-19 pandemic, are stuck at the ports.

“The delay also hindered the supply of active pharmaceutical ingredients (APIs), and other raw materials,” Dinesh Dua, chairman of Pharmaceutical Export Promotion Council (Pharmexcil) was quoted by an ET report as saying.

In the aftermath of the violence between PLA and Indian Army troops at the Line of Actual Control (LAC) in Galwan Valley in Ladakh, Indian customs officials, especially, at major Chennai and Vizag ports asked all shipments to be put on hold.

The customs officials at ports are checking all Chinese cargo consignments instead of the usual random checks, which is leading to delays. Notably, no formal instructions were issued to stop clearances, but tighter checks and more scrutiny are being carried out.

The consignments of Covid-19-related medical equipment and drug ingredients stuck at Jawaharlal Nehru Port in Mumbai and New Delhi airport are significantly adding to worries.

Dua said the current disruption from customs will adversely affect the domestic pharma industry which is at the forefront of the battle against Covid-19 in the country. Delay in releasing APIs and key starting material (KSMs) will affect the production of life-saving drugs in India and the world, he added.