GoI lifts ban on Paracetamol API exports

On May 28, 2020, the Government of India recently lifted the ban on export of paracetamol Active Pharmaceutical Ingredients.

Highlights

• The removal of ban will now allow the export of pharmaceutical ingredients used for COVID-19 treatment. 
• In order to achieve this, the GoI has amended Section 3 of Foreign Trade (Development and Regulation) act, 1992.

The Impose of Ban

• The Government of India had earlier imposed export ban on over 26 pharma ingredients. 
• This included paracetamol and hydroxychloroquine. 
• This was done to avoid shortages inside the country during the outbreak of COVID-19. 
• On April 6, 2020, the export ban on 24 APIs were lifted leaving out Paracetamol.

Supply of APIs to Europe

• India is to supply 1000 tonnes of API (Active Pharmaceutical Ingredients) to Europe. 
• Europe is the largest buyer of Paracetamol from India. 
• Europe alone imports more than 12,000 tonnes of paracetamol annually.

Paracetamol

• Paracetamol is a pain reliever. It was first made in 1877. 
• It is placed in the Essential Medicine List of World Health Organization.
• In 2018-19, India exported 5.8 billion USD worth paracetamol. 
• The export of paracetamol in 2019-20 (till January 2020) was 5.41 billion USD.