The Pharmaceutical Export Promotion Council of India (Pharmexcil), the leading body for pharma exporters, is actively working on a new Standard Operating Procedure (SOP). This initiative aims to provide crucial support to its members who are frequently facing challenges with payment defaults from international buyers.
According to Pharmexcil, while these issues don’t affect every transaction, delayed payments or the complete non-receipt of funds from overseas clients pose a considerable threat. Such financial disruptions can severely impact cash flow and create significant obstacles for smooth export operations within the pharmaceutical sector.
To ensure the SOP is as effective as possible, the Union Commerce Ministry-backed organization is actively soliciting detailed information from its members regarding payment defaults. This comprehensive procedure will be developed through close collaboration with various key entities, including Indian diplomatic missions abroad, the Export Credit Guarantee Corporation of India (ECGC), the Directorate General of Foreign Trade (DGFT), and trusted payment collection agencies.
In a recent message to its members, Pharmexcil highlighted the core objective of this new SOP: “This framework is designed to streamline how payment-related grievances are handled, significantly boosting our capacity to provide effective and constructive intervention.”
Director General Raja Bhanu K acknowledged that member companies frequently seek Pharmexcil’s help with payment delays and defaults. He clarified the organization’s stance: “As an export promotion council, our primary role is to facilitate. We do not have the statutory power to enforce payment recovery. However, we are fully committed to developing structured methods to support our members more effectively in these situations.”
Pharmexcil also noted that it receives complaints from overseas buyers regarding payment defaults from the Indian side. These concerns will also be thoroughly considered in the SOP’s development to ensure truly seamless international trade. The council assured members that all submitted data would be kept strictly confidential and used exclusively for the purpose of crafting the SOP and engaging with the appropriate authorities.