NEW DELHI, July 21: The government has decided to bailout the indigenous penicillin-g and rifampicin intermediate industry by extending the ban on imports. The fermentation industry has been plagued by serious problems of overproduction and overcapacity.The centre on Monday gave in to pressures exerted by the industry by extending the existing penicillin-g allocation policy for the remaining period of the current financial year to March 1998. This policy has been effective up to June 30, 1997.The existing rifampicin intermediates policy, 1996-97 has also been extended up to September 30, 1997 or till the new rifampicin intermediates policy is announced, whichever is earlier.Keeping in view the ample availability of penicillin-g with indigenous manufacturers, it will remain on the negative list of imports. Users will be free to lift penicillin-g from any of the indigenous manufacturers as there will be no quota allocation.The manufacturers of this drug in India are Hindustan Max GB Ltd, SPIC Pharma, Torrent Gujarat Biotech Ltd, J K Pharma Chem Ltd, Alembic Chemical Works Ltd and Indian Drugs & Pharmaceuticals Ltd.Similarly, with ample availability of rifa-s with indigenous manufacturers like Gujarat Themis Biosyn Ltd and Lupin Chemicals Ltd, there shall be no import of rifa-s linked to indigenous lifting.Clearly, the union government has decided to pay heed to the demands of the indigenous pen-g and rifa-s manufacturers to keep imports at bay, albeit temporarily.The argument given by manufacturers is that the fermentation industry is suffering from tremendous overcapacity and allowing imports will sound the death knell for domestic producers."It is important to note that the industry is suffering not as a result of a deficiency in fermentation process but because of bunching of fresh capacities. There was overcapacity even before some of the units could go fully on stream. It is, therefore, essential that these outfits receive adequate protection," an official from the department of chemicals and pharmaceuticals told The Indian Express here on Monday when contacted by us.
