Company Watch

Additional certification of ASU opposed in Karnataka

Our News Bureau - Mumbai

The ayurveda industry of Karnataka is opposing the Union Commerce Ministry's proposal to put into practice 'certification scheme' for the exporters of Ayurveda, Siddha and Unani (ASU) under which all the ASU products will be subject to quality control and inspection by Export Inspection Council (EIC), an arm of Commerce Ministry, before exporting these products.

Further it is supporting the stand taken by the Indian Drug Manufacturers' Association (IDMA) which urges the government to do away with the scheme. Also it has terminated the commerce ministry's move as a futile exercise incurring cost increase and a waste of time.

As per news reports, JSD Pani, President, Karnataka Indian Medicine Manufacturers Association, (KIMMA), Ayurveda Sector, Karnataka is in total agreement with the views of IDMA. He believes that, there need not be multiple regulatory authorities for certification of ASU products for export. If necessary, the government may strengthen the ASU regulatory authorities for monitoring and certification for export. It is more than necessary to have discussions with all the stake-holders including ASU regulatory authority before deciding on the issue finally. Industry sources in the herbal drug market feel that the present regulatory mechanism is strong enough to ensure quality control by putting the onus on the manufacturer to comply with specified regulations. Therefore another regulatory check will only end up increasing bureaucratic red tape and result in loss of both time and money.

Some observers point out that this move may not affect large players but could prove disastrous for smaller manufacturers, reducing their competitiveness in international markets. To prevent this, the government should focus on checking parallel export or illegal baggage trade of products meant for domestic market.