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Ayurvedic drug makers oppose Govt move to test products for exports


Snapshot

Drug manufacturers consider the tests to be expensive, repetitive and could delay the actual export.

They prefer being allowed to submit export-related documents on tests done by individual companies for clearance from EIA.


P.T. Jyothi Datta
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Mumbai, June 8 Concerned over adverse reports from global markets on traditional products exported from India, the Centre had recently proposed quality-linked tests and certification of ayurvedic, unani and siddha products before they left the country’s shores.

But the proposal, from the Union Commerce Ministry, has not found favour with domestic ayurvedic drug manufacturers, who say the tests are expensive, repetitive and could delay the actual export.

Exporters will have to spend about Rs 17,000 for testing and certification from the Export Inspection Agency (EIA) on every batch in the consignment and, sometimes, the entire consignment may be worth that much, points out Mr Ranjit Puranik of the Ayurvedic Drug Manufacturers’ Association (ADMA).Companies honour small overseas orders, as they could translate into larger transactions. But if the producer is required to spend on every batch of the consignment, the smaller exports could disappear, he said.

The Drugs and Cosmetics Act has norms on the presence of heavy metals like lead, arsenic, cadmium and mercury, as also aflatoxin, pesticides and so on. And large exporters test their products within these norms. Therefore, subjecting every batch to additional tests by the Commerce Ministry’s EIA will be expensive and repetitive, he added.

Though ADMA has not yet formally communicated its response to the Commerce Ministry, industry representatives suggest that they be allowed to submit export-related documents on tests done by individual companies for clearance from EIA, rather than put through another round of testing.

Need for bilateral agreement

There would be an incentive to get EIA certificate if India had a bilateral agreement with the importing countries, as is the case with prawn and poultry exports. If having an EIA certificate meant gaining a smooth access into the importing country, more exporters would be inclined to go in for certification, an industry representative said.

Despite the double testing and certification, if a product is stopped on some count, the onus still is on the exporter to clear the mess, an exporter said. Since the exporter’s neck is on the block, irrespective of Government certification, it would be better to encourage stringent self-governance rather than introduce bureaucratic processes, he said.

While there is no denying the need for a “quality footprint” to be put forward by the industry in the global market, the industry needs to graduate to that level, Mr Puranik says. Traditional products came under the scanner after concerns were raised in the US, parts of Europe and Canada. Industry representatives, however, counter that products need to be measured within the ayurvedic context and not the modern sense.

Traditional products are exported into the US, European and CIS markets, where they are sold as food supplements, an industry representative said. Industry pegs exports at Rs 250 crore, with exporters including companies like Himalaya, Dabur, Baidyanath, Shree Dhootapapeshwar among others.

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