Centre mulling opium-based drug-making licenses to pvt sector

Neemuch, MP, July 21 (UNI) The Centre is considering issuing licenses to select private sector pharmaceutical companies with the objectives of utilising a roughly 1,700-tonne opium stock, meeting a demand for codeine phosphate and production of life-saving drugs.

''India annually requires more than 25 tonnes of codeine phosphate -- an opium-based product -- for manufactuing life-saving drugs,'' General Manager (Commerce) A K Saksena, who is posted at the New Delhi office of the Chief Controller (Opium and Alkaloid Factories), told UNI.

However, the Centre's opium and alkaloid units at Neemuch and Uttar Pradesh's Gazipur -- which are being benefited by a modernisation scheme -- have a combined annual codeine phosphate output of 10 to 12 tonnes though the opium stock is plentiful.

Therefore, about 15 tonnes have to be imported.

''Despite a reduction of 15 dollars per kg in opium's sale price, export has increased but not to the desirable extent owing to stiff competition in the global market. The Government is forced to bear a heavy fiscal burden for maintaining the stock,'' Mr Saksena explained.

In 2004, the NDA regime amended the NDPS Act to incorporate a provision whereby private sector companies would be permitted to produce opium-based medicine but opium cultivation and its licenses would be the government's monopoly. However, no firm initiative was taken in that direction.

''The Union Finance Ministry is determining an absolutely transparent and crystal-clear process and rules that will enable selection of the private companies,'' the bureaucrat added.

UNI XC-AC 1701