CBN and PHARMEXCIL Sign MoU for Pharma Exports

The Central Bureau of Narcotics (CBN) and the Pharmaceuticals Export Promotion Council of India (PHARMEXCIL) signed a Memorandum of Understanding (MoU) on 24 August 2026 at the CBN Headquarters in Gwalior, Madhya Pradesh. The agreement covers legitimate pharmaceutical exports, product diversion prevention, and industry coordination through a non-binding Voluntary Code of Conduct (VCC).

Central Bureau of Narcotics

The Central Bureau of Narcotics functions under the Ministry of Finance. It is the nodal authority for supervision of opium poppy cultivation in India and for issuing import and export authorisations for narcotic-related substances and controlled chemical inputs.

The bureau also works under the Narcotic Drugs and Psychotropic Substances Act, 1985, which provides the legal framework for control of narcotic drugs and psychotropic substances in India.

PHARMEXCIL and Pharmaceutical Exports

PHARMEXCIL was set up by the Ministry of Commerce and Industry as a pharmaceutical export promotion council. It works with exporters and member companies in the pharmaceutical sector.

The MoU provides for a VCC that will include Know Your Customer checks, reporting of suspicious orders, and direct communication through designated Contact Persons in member companies. The framework is intended to support compliance in export transactions and reduce diversion risks in the supply chain.

Regulatory Cooperation Framework

The agreement includes consultation with PHARMEXCIL for drafting recommended industry practices. It does not create additional statutory or financial burdens for exporters.

The MoU is linked to India’s National Roadmap for Ease of Doing Business, which is a policy framework for reducing procedural bottlenecks in trade and regulatory processes.

The CBN has also used similar regulatory-industry arrangements with export promotion bodies, including the Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL).

Important Facts for Exams

• The Narcotic Drugs and Psychotropic Substances Act, 1985, is the principal law governing narcotic drugs and psychotropic substances in India.
• The Central Bureau of Narcotics operates under the Ministry of Finance.
• PHARMEXCIL is an export promotion council under the Ministry of Commerce and Industry.
• Know Your Customer, or KYC, is a compliance process used to verify the identity of business partners and customers.

Recent Institutional Action

Officials held discussions on a six-month action plan covering pan-India outreach, stakeholder sensitisation, and areas of institutional and regulatory cooperation. The signing and exchange of documents took place between Narcotics Commissioner Dr. Dinesh Bisen and Director General Shri Raja Bhanu.