Govt's mkt access scheme finds few takers

The market access initiative (MAI) of the commerce ministry, with newly added attractions like reimbursement of litigation charges, has found few takers in the pharmaceutical sector.

Even though litigations and charges related to compliance of statutory requirements are common expenses for drug exporters, none of them have approached the Pharmaceutical Export Promotion Council (Pharmexcil) to claim reimbursements on expenses related to product registration and anti-dumping allegations incurred abroad.

"The non-enthusiasm among the pharmaceutical industry continues despite the best efforts to publicise the benefits of the scheme," P V Appaji, executive director, Pharmexcil, said.

In the absence of proper response, Pharmexcil is finding it difficult to identify and clear the operational hurdles that are likely to be associated with the implementation of the additional MAI benefits.

The commerce ministry had, on January 4, 2007, enlarged the scope of the MAI to include expenses for compliance of statutory requirements in the buyer country, including charges for product registration for pharmaceuticals, bio-technology and agro-chemicals, clinical trials for drugs and medical disposables, and medical equipment.

According to the revised MAI, the export promotion council (Pharmexcil in this case) can process reimbursement applications for contesting litigations in another country. The reimbursement applications can be about restrictions, anti-dumping duties etc on particular products of Indian origin.

However, the product groups, nature of litigation to be supported, and the extent of support would be decided by an 11-member empowered committee (EC) chaired by commerce secretary.

For expenses on statutory compliances, the level of assistance under the scheme is 50 per cent of the expenses with a Rs 50 lakh per annum ceiling for individual exporter.

In the case of tests, an exporter can apply for maximum five tests in a year and can claim up to Rs 10 lakh per annum. For anti-dumping, anti-money laundering and other investigations or compliances, the assistance will not exceed 50 per cent of the actual expenditure subject to an upper ceiling of Rs 200 lakh in each case.

The MAI scheme is formulated on the basis of 'focus product-focus country' approach to evolve specific market and specific product through market studies and surveys.

It involves financial assistance for marketing projects abroad, capacity building (modernisation of laboratories for fulfilling SPS measures, related testing etc, including reimbursement of testing charges) and support for statutory compliances, and market studies.