Domestic generic exports likely to enhance with bar-coding

The domestic generic exports are expected to get additional boost after the implementation of bar-cording is implemented in phases over the next year, as a result of which drug consignments would be better tracked and monitored. However, the small and medium (SMEs) Pharma Industries are opposing the introduction of bar-coding for drugs exports.

The bar-codes contain a unique identification code and a serial number which is proposed to be encoded on all primary and secondary packs and tertiary packs so that these can be tracked down and this would also help to track the origin of fake drug, this would also help to establish India as a quality supplier of drugs. Complete bar-coding on medicine strips, packs and cartons - part of all export consignments - was to be implemented from July 1 for better tracking following concerns of fake drugs raised by certain countries. As per the new schedule, bar-codes on primary level packaging, which includes medicine strips, vials or bottles, will be mandatory from July 2012.

Experts are of the view that, 'the proposed system would establish the origin of the consignment, ruling out incidents where fake drugs were shipped from other countries like China, but under a domestic company's name.” India's drug exports are estimated to be around Rs 50,000 crore to countries in Latin America, Southeast Asia, the Gulf and Africa.

The government wants exporters of pharmaceutical products to adopt a trace and track system using bar-code technology as per the international standards. The commerce ministry had said that bar-codes on secondary level packing would be implemented from January next year. However, the SMEs Pharma industries are opposing the introduction of bar-coding for drugs exports, as the technology used for bar-coding is expensive and it’s not financially viable for small and medium Pharma industries. 

Proving its point, the pharma industry noted that an SME with exports of around Rs 15-20 crore would need to invest Rs 2 crore on bar-code machines - one for each blister machine and one each for syrups and injections - and spend another Rs 1 crore annually on consumables like ink, etc, plus registration with GS1. This would make SMEs unviable for exports and hand over the market to China in case of generics and to MNCs in case of patented drugs.