India weighs minimum import price for Penicillin-G to protect PLI-backed API capacity

India is close to notifying a time-bound Minimum Import Price (MIP) for Penicillin‑G (Pen‑G), a key fermentation-based antibiotic input, to reduce the impact of low-priced imports (largely from China) and support domestic bulk-drug capacity being rebuilt under the Production-Linked Incentive (PLI) scheme. The proposed MIP is described as transitional (typically around one year) and would apply only to imports meant for domestic consumption, while exempting export-linked imports positioning it as an anti-undercutting measure rather than a broad trade barrier. A key beneficiary is

, which has invested over Rs 2,500 crore in a Pen‑G/6‑APA project; however, analysts cited in the report indicate domestic Pen‑G economics may require an MIP “well above” $25/kg (aligned to estimated local production costs). This comes as global Pen‑G prices have fallen to about $13.5/kg in late 2025, leaving Indian producers operating at restrained utilization without policy support. The Pen‑G move follows an earlier MIP of $180/kg for Potassium Clavulanate (used in Augmentin) that runs until November 30, 2026; the article notes clavulanate prices fell to $150–$155/kg in June 2025 after domestic entry, and later returned to ~$180–$190/kg. Industry bodies such as IPA and BDMA back the Pen‑G proposal, while the government argues most penicillin formulations remain under price control, limiting pass-through to consumers. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.