IDMA, in its pre-budget presentation, has further called for facilitating import of intermediates not manufactured in the country and has recommended concessional duty of 10 per cent on certain bulk drugs.

The pharma industry has asked for withdrawal of the concessional import duty of 25 per cent on 7 Amino Cephalosporin C (7ACA) and bring it at par with the normal customs duty of 35 per cent applicable for normal pharmaceuticals and chemicals goods.

IDMA has made a representation to the department of chemicals & petrochemicals in the ministry of chemicals and fertilisers for removal of this anomaly and protect the industry from cheap imports.

Incidentally, the request for hiking the import duty on 7ACA also features in the pre-budget memorandum presented by the Federation of Indian Chambers of Commerce and Industry (Ficci) to the finance minister recently.

In line with the government's policy of encouraging drug production from the basic stage in complex areas as well as of ensuring adequate supply of important life-saving drugs, Ficci has asked if concessional tax treatment on 7-ACA is warranted any longer.

IDMA, in its memorandum, has said there is a need to remove 7ACA from concessional customs duty as indigenous manufacturers have now developed sufficient capacities to fulfill the country's domestic requirement.

Currently, 7 Amino Cephalosporin C is placed in the list of concessional import duty of 25 per cent and concessional duty on 7ACA was levied with a view to provide the antibiotic-based intermediary at an affordable price. Cephalosporin market in India is worth Rs 120 crore and worldwide, the product has a market of over $6.5 billion.

India till recently was totally dependent on imports for Ceph-C and its derivative 7-Amino cephalosporanic Acid (7-ACA), whose market is growing at around 35 per cent per annum. India's imports today stand at around 75 mt of Ceph-C, worth about Rs 35 crore. Another Rs 80 crore worth of 7ACA is imported to be exported back as finished value-added product.

In the domestic market, Alembic Limited is one of the major producer of 7ACA, which recently set up the plant with an investment of Rs 45 crore and has staretd to cater to majority of the domestic demand, which was otherwise being met from imports.

The industry, through its representation, has also allayed fears that the domestic industry is today in a position to meet the domestic demand and there is no need to import the product. Till recently, majority of the domestic requirement of Ceph-C was being met through imports and the landed cost is around $125-130 a kg. It was $200 in the beginning of the year.