India relaxes ban on exports of paracetamol, hydroxychloroquine

New Delhi: India relaxed a ban on exports of paracetamol and hydroxychloroquine (HCQ), both used in Covid-19 therapies, and placed them in the licensed category. US President Donald Trump had threatened India with retaliation if it rejected his country’s demand for the supply of hydroxychloroquine, which he sees as key to battling the infection. Doctors and scientists are divided over the efficacy of the drug, used to treat malaria and auto-immune diseases, in combating Covid-19.
The move to ease the export ban followed the recommendation of an expert panel, said officials with knowledge of the matter. The panel led by drug pricing regulator Shubhra Singh had been tasked with assessing the capability and the manufacturing capacity of domestic pharmaceutical companies. ET had reported on Monday that the ban was about to be lifted.

“The decision was taken only after the panel got enough evidence from the companies that we have enough stocks available in the country,” said one of the persons. India is one of the biggest manufacturers of the drug.

Apart from the US, about 30 countries, including South Asian neighbours and key global partners in West Asia, had asked India to lift the ban on hydroxychloroquine exports.

The companies producing the drug have been asked to submit production details on a weekly basis. The decision on how much can be exported will be taken by the expert panel led by National Pharmaceutical Pricing Authority chairperson Shubhra Singh.

“The assessment will be done every week. The NPPA panel will review the production, local market requirement and how much export can be permitted after satisfying the local demand,” people in the know said. After the government announced lifting of restrictions on Tuesday, the NPPA assessed the production capacity and local need on Wednesday. “The supplies won’t be exported as per the demand from other countries but rationing will be done according to the local demand,” the person added.

Trump had asked Prime Minister Narendra Modi on Sunday to free up exports of the drug that he sees as a Covid-19 game changer.


Ipca, Zydus Main Players
“For many years, they’ve taken advantage of the United States on trade,” Trump had told reporters at the White House. “So I would be surprised if that were his decision. He'd have to tell me that. I spoke to him Sunday morning, called him, and I said, we'd appreciate you allowing our supply to come out. If he doesn't allow it to come out, that would be OK. But of course, there may be retaliation. Why wouldn’t there be?”

The foreign ministry said India will license the medicines in appropriate quantities to neighbouring countries and nations that have been badly hit by the pandemic.

“In view of the humanitarian aspects of the pandemic, it has been decided that India would licence paracetamol and HCQ in appropriate quantities to all our neighbouring countries who are dependent on our capabilities,” said MEA spokesperson Anurag Srivastava. “We will also be supplying these essential drugs to some nations who have been particularly badly affected by the pandemic.”

“MEA will process the applications and the department of pharmaceuticals would assess those based on the supply and requirement in India. The commerce department will then direct customs officials to release those consignments for export,” said an official.

Ipca and Zydus are the two major producers of hydroxychloroquine in India.

“India has enough capacity and capability to cater to domestic and exports demand,” said Ashok Madan, executive director, Indian Drug Manufacturers’ Association. Trade experts said the US should reciprocate.

“This shows how asymmetrical the trade relation is,” said one of them. “India is doing a favour by supplying these medicines and must get something in return.”

Almost 30% of India’s pharmaceutical exports are to North America, 16% to Europe and 17% to Africa.