DGFT Revises Bulk Drug Policy, PEN-G, Amoxycillin Subject To Minimum Import Price Till Jan 2027

In a Notification dated 29 January 2026, the Directorate General of Foreign Trade (DGFT) has revised the import policy for certain bulk drugs, including Penicillin G-Potassium (PEN-G) and its salts.

According to the notification, specific antibiotics such as PEN-G, Amoxycillin and its salts, and 6-APA have been moved from the 'Free' category to the 'Restricted' category.

Further, the notification prescribes a Minimum Import Price (MIP) for certain imports. It is the lowest price at which a product can be legally imported into a country. Any imports below the MIP are subject to restrictions, additional duties, or may be disallowed.

For instance, per the notification, imports below Rs. 2,216 per kg for PEN-G, Rs. 3,405 per kg for Amoxycillin, and Rs. 2,733 per kg for 6-APA will remain “restricted” until 29 January 2027.”

The move follows the Production Linked Incentive Scheme for Bulk Drugs, introduced in late 2025 to prevent supply disruptions and promote local manufacturing of critical active pharmaceutical ingredients (APIs). The MIP condition is intended to protect domestic production under the PLI scheme for one year.

However, this restriction does not apply to:

• 100% Export Oriented Units (EOUs)
• Units located in Special Economic Zones (SEZs)
• Imports made under the Advance Authorisation Scheme, provided such imports are not sold domestically.

The amended import policy for PEN-G, 6-APA and Ampicillin Trihydrate applies in the following manner: