Domestic bulk drug prices are likely to rise as India gears up to implement import registration norms for drugs and overseas manufacturing facilities from April 1, 2003.

This could mean the revival of an industry reeling under the impact of cheap Chinese bulk drug imports, feel analysts.

The new norms are being implemented to ensure adherence to stringent quality standards. From the next fiscal, only drugs registered with the Drugs Controller General of India (DCGI) will be allowed for import. Further, the manufacturing facilities of these drugs too will have to be registered with the DCGI.

A one-time fee of $1,000 for registration of an individual drug and $1,500 for registration of a manufacturing facility will be charged on the companies exporting to India. Industry sources said this will effectively prevent import of spurious products from small traders of substandard overseas manufacturers.

Yogin Majmudar, president of the Indian Drug Manufacturers' Association said, "The import registration will prove beneficial to the domestic bulk drug industry, which will now receive a boost as spurious, low-cost drugs can no longer be imported. Even many reputed companies, which used to import products from their second-grade overseas plants, will now be forced to export only quality products to India."

"Better price realisation will also prompt some players, which had earlier stopped production of some products due to the flood of cheaper imports, to restart production of those products," Majmudar added.

Senior executives at Lupin Ltd said, "(The import registration) will ensure only good companies with good manufacturing practices having proper documentation will get registered. The large and good manufacturers from China are going to stay. The registration charge will only restrict the entry of small traders."

It is learnt that over 350 drugs, manufacturing facilities and their authorised agents have registered till February 15, 2003.