Chitwan, May 26: The Association of Pharmaceutical Producers of Nepal (APPON) has demanded the government to curb unnecessary import of foreign medicines.
Internal competition should be promoted and import of foreign medicines curbed, APPON said, reminding the government that Nepal was self sufficient in a varieties of medicines. The government is suggested the import of only raw materials for medicines.
There are nearly 1,000 drug producing companies in Nepal, while 10 have already closed and 50 facing closure owing to failure to compete the market of imported medicines. Even the industries which are producing medicines are running at 30 to 40 percent capacity.
Reasoning such situation, the Association called on the government to take concrete measures to protect national industries on drug production.
Former central chairman of APPON, Narayan Bahadur Chhetri, shared the plight that it was difficult for them to compete with imported medicines while Nepal itself has produced same medicines.
Although the industries related to medicines have witnessed gradual development for three decades, these are running subpar. “The industries are running only at 30 percent strength. The major barriers they face for thriving is the market dominated by imported medicines,” he said, adding that the medicines of 200 foreign industries including that of India are imported to Nepal.
India manufactures huge amount and varieties of medicines at relatively low cost. On the other hand, the production cost in Nepal is high and we have a small market. The low customs duty on the import of foreign medicines is another factor behind their thriving market in Nepal, according to him.
Moreover, the Nepali pharmaceutical industries are compelled to pay higher customs duty and VAT while importing the items for packaging medicines and glasses. It further dents Nepali industries’ capacity and encouragement. “The government must adopt a policy of importing only raw materials of medicines rather than the medicines which are already produced in Nepal,” he reiterated.
Similarly, central chairman of APPON, Biplav Adhikari, informed that over Rs 40 billion has been invested in the Nepali pharmaceutical industry, of which, 50 to 60 percent is the banking investment. He also expressed worry over dwindling condition of such industries.
“Nearly 50 of the existing industries are facing imminent closure. Only 10 of the industries are capable to run smoothly. Some have been facing financial crisis to the extent that they are unable to pay employees and bank loans,” Adhikari explained.
He complained that though the government in 2074 BS had decided to stop the import of 30 medicines that are produced within Nepal, it was not implemented so far. “Once the import of medicines, which are already produced within Nepal, is checked, the national industries survive well, thereby contributing to government’s revenue,” the chairman added. He also said customs duties and VAT were equally important issues to address this problem.
Delay in drug licenses is harassing drug entrepreneurs. The entrepreneurs are not for control but facilitation of government in this regard.
It is estimated that Nepal consumes the medicines of around Rs 7 billion annually. Of these, only half make up the Nepali medicines’ market. The manufacturers claim that Nepal-produced medicines have quality, so the export of similar medicines need checked.
Echoing similar concern, vice chairman of APPON, Santosh Baral, demanded government that it checked the import of foreign medicines if Nepali pharmaceutical industries are to thrive. Discount on bank interest rate, better facilitation in import of technology, export of Nepal-made medicines are other areas drawing attention and engagement.
