APPON urges govt to curb imports of medicines that are produced in Nepal

CHITWAN: Association of Pharmaceutical Producers of Nepal (APPON) has urged the government to curb imports of medicines that are already manufactured in Nepal, warning that unchecked imports are harming local drug makers and threatening the industry.

According to APPON, Nepal is self-sufficient in many medicines and should import only raw materials. The association said there are nearly 1,000 drug manufacturers in the country. Ten companies have closed, and about 50 face closure after failing to compete with imported products. Many firms are operating at 30 to 40% capacity.

Former APPON President G Narayan Bahadur Chhetri said Nepali manufacturers cannot compete when identical medicines are imported. "The industries are running only at 30% strength. The major barriers they face for thriving are the market dominated by imported medicines," he said. He added that medicines from about 200 foreign companies, including many from India, are sold in Nepal.

Chhetri blamed cost and policy differences for the sector’s struggles. He said India produces large volumes at lower cost, while production costs in Nepal are high and the domestic market is small. He also criticised low customs duty on imported medicines and higher duties and VAT on packaging materials and glass for Nepali firms.

"The government must adopt a policy of importing only raw materials of medicines rather than the medicines which are already produced in Nepal," Chhetri said.

APPON President Biplab Adhikari said the sector has attracted over Rs 40 billion in investment, with 50 to 60% coming from banks, but warned many companies are in financial distress. "Nearly 50 of the existing industries are facing imminent closure. Only 10 of the industries are capable of running smoothly. Some have been facing financial crisis to the extent that they are unable to pay employees and bank loans," he said.

Adhikari noted that a 2074 BS government decision to stop imports of 30 medicines produced domestically has not been implemented. "Once the import of medicines, which are already produced within Nepal, is checked, the national industries will survive well, thereby contributing to the government’s revenue," he said, and called for a review of customs duties and VAT.

APPON General Secretary Santosh Baral urged the government to check imports if Nepali pharmaceutical industries are to recover. He also called for lower bank interest rates, easier access to technology imports, and support for exports of Nepal-made medicines. APPON asked for faster processing of drug licences, saying delays harm entrepreneurs and that firms need facilitation from authorities.

Industry representatives estimate Nepal’s annual medicine consumption at about Rs 7 billion. APPON said roughly half of that market is supplied by Nepali manufacturers and that Nepal-made medicines meet quality standards. The association asked the government to take concrete steps to protect and revive the domestic pharmaceutical sector.

(With inputs from RSS)