Pharma exporters body Pharmexcil is exploring the scope of evolving a standard operating procedure (SOP) to assist members grappling with payment defaults by buyers.
Though limited to certain cases, delayed payments or non-receipt of dues from overseas buyers is a challenge, impacting cash flows and posing significant hurdles to seamless export operations, the Pharmaceuticals Export Promotion Council of India said.
Seeking information from members on payment defaults to facilitate development of the SOP, the body under the Union Commerce Ministry said the development of the procedure will be in undertaken in collaboration with Indian Missions abroad, ECGC, DGFT as well as reputed payment collection agencies.
“This SOP aims to streamline the process of addressing payment-related grievances and enhance our ability to intervene constructively,” Pharmexcil said in a communication to its members.
Member companies often approach Pharmexcil for assistance in resolving matters around delay and default in payments. “We wish to reiterate that as an export promotion council, our role is primarily facilitative. We do not possess statutory authority to enforce payment recovery. Nevertheless, we are committed to exploring structured mechanisms to support our members more effectively,” Director General Raja Bhanu K said.
The Council is also in receipt of complaints from overseas buyers on payment default by India side, which would also be taken into account for ensuring seamless trade, Pharmexcil said, assuring confidentiality of the data and its use solely for the purpose of designing the SOP and engaging with relevant authorities.
Published – October 04, 2025 07:59 pm IST
