Indian Government is now actively considering the ministry of commerce's proposal to set up a warehousing facility in Russia and Sharjah, to assist the small and medium pharmaceutical exporters.

Russia is in the third position for the total pharma exports, valued at over Rs 1,226 crore last year which is 3.76% of global exports. The market has been growing at a rate of 5% and is attracting lot of SMEs.

The ministry commerce will work out on the modalities for the proposal put forth by the Pharmaceutical Export Promotion Council (Pharmexcil) which had urged the government for setting up of a warehousing facility in Russia. Besides, the government is also planning to have one more facility in Sharjah.

Elaborating the proposed facility, Pharmexcil authorities believe that there is a big challenge for the pharma SME sector to store their products and this proposal would benefit about 50-60 SMEs exporting their goods to Russia..

The exclusive facility, to be housed on over 1,000 sq m, would initially be used for storing formulations, he added. However, the government is yet to work out details on the investment-related issues.

To be set up on the PPP model Pharmexcil is planning to approach the Central Warehousing Corporation for setting up the facility. Further, the government is also planning to reimburse the rentals for its usage. Companies, for a period of three years, can use the facility at a reimbursement cost of 75%, 50% and 35%, he added. There is also a proposal to set up a similar warehousing facility in Sharjah. However, it is still in the initial stages.