Pen-G, currently in the negative list of imports is apparently being imported in bulk by some export houses. This practice was checked earlier in August 1998 when the Pen-G industry represented the matter to the government and stopped further imports. ``Fish will die if they are given so much Pen-G'' said an industry official, indicating that the material was clandestinely coming into the open market.

While two containers of 40 mmu have already been sold in the market, licences have been issued for import of 1600 mmu (about 1000 tonnes) of penicillin-G against export of 200,000 tonnes of fish and shrimp. The industry is again registering its protests to the government.

Penicillin-G price which was ruling atRs 475 per bu has now picked up and is currently ruling at Rs 520 per bu (1000 bu make an mmu). The product has been witnessing a see-sawing of prices globally from 1997 much to the dismay of the industry which had invested huge amounts for large capacities.

``At the time of putting up the various projects Pen-G (1996-97) was selling around $ 1100, and anything above a sale price of $ 675 was a profit,'' said an industry official.

Corporates such as Spic Pharma, JK, Torrent Gujarat Biotech, Hindusthan Max GB put up capacities to the tune of 5800 mmu, when prices crashed.

In November 1997, Pen-G was ruling at Rs 621 per bu, In March 1998 it was Rs 530 per bu, in May it touched Rs 570 and fell down to $ 475 in September.

The industry had anticipated a break even after five years of commissioning the plant, but many companies feel that this could take longer.

``A helping hand from the government till 2003 will help us stabilise and meet the challenges of free imports and a duty free regime,'' saidindustry officials.

To that end, the industry has made the same requests to the government which were made last year.

Delay giving Pen-G OGL status (which was done last year). Give Pen-G locally sourced a deemed export status. This would stimulate purchase of the product from the domestic industry by the formulations industry who export against import of Pen-G.

Also reduce export obligations of the pharma industry who import Pen-G from 18 months to 6 months, to prevent misuse of imports.

Currently the country imports 6000 mmu

If these measures are carried out, the industry would be able to sustain itself against the international market long enough to meet the real challenges of WTO regime. Already corporates such as JK Pharmachem, SPIC Pharma, HMGB are exploring various options and are carrying out various measures to enhance productivity at lower costs, and try out other fermentation products which would not require high investments for optimum utilisation of capacity and better returns. But asteady policy would help them make the necessary investment decisions they feel.