The Indian government has imposed minimum import prices on critical pharmaceutical raw materials to shield domestic producers from aggressive undercutting by Chinese suppliers. The Directorate General of Foreign Trade notified fixed import prices for items like diluted potassium clavulanate and ATS-8, effective until November 30, 2026.
Diluted potassium clavulanate, used in antibiotic production, now carries a minimum import price of $180 per kilogram. ATS-8, a vital intermediate for atorvastatin calcium in cholesterol drugs, stands at $111 per kg. Imports below these thresholds face restrictions, though exemptions apply to special economic zones, export-oriented units, and advance authorizations.
This policy extends earlier measures, such as the November minimum price of Rs 1,174 per kg for sulphadiazine, valid until September 2026 and ATS-8 restrictions starting September 2025. Officials seek to strengthen the Production Linked Incentive scheme introduced in 2020, designed to reduce dependence on China, which provides 70 per cent of India’s $10-12 billion pharmaceutical raw material imports.
Pharma experts express mixed views. Some praise the policy for supporting local manufacturing and Atmanirbhar Bharat goals, while others warn it could raise costs for API makers and formulations, potentially hiking medicine prices for patients. One source called the clavulanate pricing counterproductive, as firms previously sourced it at $140 per kg.
The restrictions target domestic consumption imports only, sparing exports to maintain India’s global edge. Industry watchers see it as a targeted step against dumping amid Chinese price cuts threatening PLI investments.
