Govt Sets Import Price Floor for Key Antibiotic Raw Materials

The Centre has fixed minimum import prices (MIP) for select antibiotic raw materials to curb low-priced imports and support bulk drug manufacturing in the country. The move, notified by the Directorate General of Foreign Trade (DGFT) through a DGFT notification, targets critical inputs used in widely prescribed antibiotics and will remain in force for one year.

Under the notification, imports of Penicillin G-potassium for domestic use cannot be priced below ?2,216 per kg, while Amoxicillin Trihydrate carries a floor of ?2,733 per kg on a CIF basis. The minimum price for 6-Aminopenicillanic Acid (6-APA) and its salts has been set at ?3,405 per kg. Shipments priced below these levels will not be allowed into the domestic tariff area.

The restriction does not apply to 100% Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, or imports made under the Advance Authorisation Scheme, ensuring uninterrupted supplies for export-linked manufacturing.

These inputs are central to antibiotic production. Penicillin and amoxicillin are widely used active pharmaceutical ingredients (APIs) in treatments for bacterial infections, while 6-APA serves as a core intermediate for several semi-synthetic antibiotics, including ampicillin and cloxacillin. Domestic producers have long argued that cheap imports from China have eroded capacity utilisation and weakened price stability across the sector.

India currently imports a large share of its pharmaceutical intermediates, creating vulnerabilities in the Indian pharma supply chain. Policymakers say the price floor aligns with efforts to rebuild domestic pharmaceutical manufacturing, improve supply security, and back investments under the Production Linked Incentive (PLI) scheme for bulk drugs.

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Industry reaction is divided. Bulk drug manufacturers see the move as protection against predatory pricing and a step toward restoring viability. Formulation companies, however, warn that higher input costs could pressure margins and influence pricing decisions. The government maintains that exemptions and periodic review will help balance industry sustainability with patient affordability.