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New Delhi: The government's efforts to support indigenous drug makers through the Minimum Import Price (MIP) framework is yet to see a clear beneficial impact
New Delhi: The government's efforts to support indigenous drug makers through the Minimum Import Price (MIP) framework is yet to see a clear beneficial impact, several industry executives told ET. Earlier this year the government had restricted domestic pharmaceutical companies from importing a few key raw materials below a threshold pricing.The MIP was set for some key pharmaceutical inputs like penicillin G and its salts, 6 APA and amoxicillin. According to the notification from the Directorate General of Foreign Trade (DGFT), the import price for penicillin, a key raw material for antibiotics, was set at ₹2,216 per kg, for amoxicillin the import price was fixed at ₹2,733 per kg and ₹3,405 per kg for 6-APA.Also Read: Stress, poor sleep and processed food are driving heart attacks in young Indians: Ramakanta Panda"Demand is yet to return and that raises concerns about the effectiveness of a policy to bolster domestic pharmaceutical manufacturing," one senior executive told ET.
He added that the government's clear intent to strengthen the Make in India agenda through the MIP mechanism has not found the expected traction from buyers, traders, and finished dosage form (FDF) manufacturers who have been slow or reluctant to pivot toward domestic suppliers at MIP linked prices."Due to this, a significant installed capacity is
lying underutilised," he added.Also Read: India bans 16 fixed-dose drug combinations over safety concernsHowever, others say that this is a passing phase. "Many buyers had stocked up heavily on a few raw materials in anticipation of MIP kicking in, and that could be one of the reasons for the lukewarm response," he noted.He added he
is hopeful that the stockpiles are now gradually being consumed and once they run out, buyers will source fresh material."We got the MIP in September 2025, pre-war, and till date we have low volumes despite having double the capacity India needs. MIP on ATS-8 completely debunks the myth of demand and supply," said Namit Joshi, chairman, Pharmexcil.
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