The Union ministry of commerce and industry [DGFT via the notification number 56/2025-26 dated January 29, 2026] has imposed Minimum Import Price (MIP) for three active pharmaceutical ingredients (APIs) – penicillins and its salts, amoxicillin and its salts, and 6-APA – restricting imports of these products valued under the MIP for a period of one year.¹

What Does It Mean

The Government has imposed a minimum import price (MIP) on three key penicillin ingredients- Penicillins and its salts, 6-Aminopenicillanic Acid (6-APA), and Amoxicillin and its salts-falling under ITC (HS) Codes 29411010, 29411050, and 29411030, respectively, of Chapter 29 of ITC (HS), 2022, Schedule I (Import Policy).
The measure has been imposed for a period of one year, with the stated objective of supporting domestic manufacturers and securing India’s antibiotic supply chain.²

By setting a price floor on imports, the Government aims to prevent market distortion caused by ultra-cheap imports, support domestic manufacturers, and ensure the long-term availability

of essential antibiotics. This has become increasingly important in the context of rising antimicrobial resistance (AMR) and recurrent global supply chain disruptions.
Certain exemptions to this restriction have been provided, subject to the condition that the imported inputs are not sold in the domestic tariff area, thereby ensuring that export-oriented manufacturing remains unaffected.

The restrictions are expected to protect domestic production by preventing the inflow of very cheap active pharmaceutical ingredients (APIs). They are also intended to support investments made under the Production Linked Incentive (PLI) Scheme, thereby further incentivizing domestic manufacturing of critical APIs and key starting materials. In addition, the move is aimed at strengthening supply chains and curbing dumping practices.

At the same time, while the policy is designed to protect the domestic industry, a key concern lies in the possibility that higher API costs could hurt the competitiveness of domestic producers and squeeze their margins. There is also a risk of pass-through effects on the affordability of certain drugs if domestic API costs rise.

The eventual effects of this measure will become clearer over time. However, the alignment of trade policy with drug security objectives and the AMR strategy is a welcome step and has the potential to boost domestic manufacturing in the medium to long term.