Centre Sets Minimum Import Price for Key Antibiotic APIs Penicillin G, Amoxicillin, 6-APA
New Delhi: The Union government has announced a minimum import price (MIP) for crucial antibiotic raw materials, including penicillin G, amoxicillin and 6-aminopenicillanic acid (6-APA), in a move aimed at regulating the influx of low-priced imports and supporting domestic pharmaceutical production.
According to a recent media report in The Economic Times, under the newly issued Directorate General of Foreign Trade (DGFT) notification, imports of these key pharmaceutical inputs cannot be brought into the country below the mandated floor prices, which will remain in force for one year. For Penicillin G-potassium (Pen-G) the floor price is set at ₹2,216 per kilogram, while amoxicillin trihydrate imports must meet a minimum of ₹2,733 per kilogram. The minimum import price for 6-APA and its salts has been fixed at ₹3,405 per kilogram.
Officials stated that the policy is intended to counter the practice of “dumping” cheap raw materials — particularly from China, which supplies around 70% of the pharmaceutical raw material needs of the Indian industry - that can undercut local producers and threaten their sustainability. Penicillin and amoxicillin serve as essential active pharmaceutical ingredients (APIs) for widely used antibiotic formulations, and 6-APA is a key starting material (KSM) for the synthesis of multiple antibiotics.
The import restrictions apply only to products brought into India for domestic consumption. Imports by 100% export-oriented units (EOUs), special economic zone (SEZ) units, and those under the Advance Authorisation Scheme will continue under existing arrangements, provided the imported inputs are not sold in the domestic tariff area.
Government representatives noted that this measure aligns with earlier efforts — including the Production Linked Incentive (PLI) scheme for pharmaceuticals — to reduce dependence on imported raw materials and boost local manufacturing capacity. The PLI scheme has helped mobilise investments and expand domestic production capacity for critical drug intermediates in recent years.
Industry experts have observed that while MIP may help level the playing field for Indian manufacturers, its impact on production costs and access to affordable medicines will need to be monitored over the coming months, reports The Economic Times.
