India partially eases restrictions on export of anti-malarial drug

STOCKPILING Officials say orders from other countries will be fulfilled only after meeting all domestic requirements

NEW DELHI: India has partially eased restrictions on export of anti-malarial drug hydroxychloroquine and paracetamol, cited by some as key to the fight against Covid-19, to fulfil existing orders and to meet the needs of neighbouring countries, but only after building its own stockpile of the drug.

The move came late on Monday, hours ahead of a conference by US President Donald Trump, who spoke of “retaliation” if India didn’t do so.

People familiar with developments, who spoke on condition of anonymity, said existing orders from other countries, including the US, for hydroxychloroquine and paracetamol will be cleared only after meeting all domestic requirements.

The external affairs ministry said the two drugs will be supplied in “appropriate quantities” to all neighbouring countries dependent on India’s capabilities.

India, the largest producer of hydroxychloroquine, initially banned exports of the drug on March 25 to ensure adequate domestic supplies. Rules were tightened on April 4 by barring exports from special economic zones (SEZs) and export-oriented units (EOUs), where such bans don’t usually apply.

However, Trump and Brazil President Jair Bolsonaro called on India to permit the supply of the drug to cope with Covid-19 cases in their countries. Early on Tuesday, Trump spoke about “retaliation” if India didn’t lift its hold on US orders.

But even before Trump warned India of retaliation, the Modi government had communicated to all countries, including the US, the change in policy to facilitate supply of critical drugs through institutionalised channels. The empowered committee chaired by Prime Minister Narendra Modi decided on Monday to lift export restrictions on 14 drugs and to licence the export of hydroxychloroquine and paracetamol after reconciling with domestic demand.

One of the people cited above, who declined to be named, said: “There has been a partial lifting of the ban, but (export of) hydroxychloroquine and paracetamol exports will continue to be restricted. Depending on availability of stocks of hydroxychloroquine after meeting domestic requirements, existing orders will be cleared.”

The department of pharmaceuticals under the ministry of chemicals and fertilizers and the external affairs ministry will decide on allocations on a case-to-case basis in view of the humanitarian situation related to the pandemic, the people said.

External affairs ministry spokesperson Anurag Srivastava said paracetamol and hydroxychloroquine “will be kept in a licenced category and their demand position would be continuously monitored”. He added, “However, the stock position could allow our companies to meet the export commitments that they had contracted.” Srivastava said India had decided to “licence paracetamol and hydroxychloroquine in appropriate quantities to all our neighbouring countries who are dependent on our capabilities”.

Explaining the government’s move, a senior South Block official said: “It is not only about hydroxychloroquine or the US. The Indian pharmaceutical industry supplies HIV drugs to South Africa, paracetamol to the UK and 80% of all drugs to the neighbourhood and it will supply hydroxychloroquine to the US, Spain, Germany and Brazil.”

Behind Modi’s decision on easing the export ban is also the message that India won’t walk out of commitments on critical drugs.

The Indian Council of Medical Research has said: “Hydroxychloroquine is found to be effective against coronavirus in laboratory and in-vivo studies.”

India’s National Taskforce for Covid-19 has recommended the use of hydroxychloroquine for infections among “asymptomatic health care workers involved in the care of suspected or confirmed cases of Covid-19” and “asymptomatic household contacts of laboratory confirmed cases”.