The Union Ministry of Commerce and Industry has imposed a Minimum Import Price (MIP) on three key active pharmaceutical ingredients—penicillin and its salts, amoxycillin and its salts, and 6-aminopenicillanic acid (6-APA)—for a period of one year. The move restricts imports of these products below the prescribed price thresholds and takes effect immediately.

Under the notification issued on January 29, 2026, the MIP for penicillin G-potassium has been fixed at INR 2,216 per kilogram, amoxycillin trihydrate at INR 2,733 per kilogram, and 6-APA at INR 3,405 per kilogram. Imports of these APIs falling below the specified CIF values have been classified as “restricted” for the duration of the MIP period.

The Ministry clarified that the restriction will not apply to imports made by 100 percent Export Oriented Units, units operating in Special Economic Zones, or imports under the Advance Authorisation Scheme, provided the imported inputs are not diverted for sale in the Domestic Tariff Area.

The decision is part of a broader government effort to support domestic manufacturing of pharmaceutical raw materials. Authorities have been examining the imposition of MIP on select APIs and intermediates, particularly those used in antibiotic production, to curb large-scale low-priced imports that could undermine the viability of Indian manufacturers.

Officials noted that heavy dependence on imports—primarily from China—has posed sustainability challenges for domestic API producers. By discouraging underpriced imports, the MIP is expected to provide a level playing field for Indian companies investing in local production.

The measure is also aligned with the Production Linked Incentive (PLI) scheme aimed at boosting domestic manufacturing of critical key starting materials, drug intermediates and APIs. Several Indian firms are currently setting up bulk drug facilities under the scheme to reduce import dependence and enhance self-reliance.

The Department of Pharmaceuticals had consulted industry stakeholders in 2025, seeking inputs and objections on the proposed MIP framework before finalizing the notification.