India's role in diversion

Somehow I came upon The International Narcotics Control Strategy Report (INCSR) is an annual report by the Department of State to Congress prepared in accordance with the Foreign Assistance Act. It describes the efforts of key countries to attack all aspects of the international drug trade in Calendar Year 2007. "Diversion" is apparently the latest way of getting from the suppliers to the end users.

Notice 'Transit Country A' is somewhere in South America - interesting graphical prejudice (but I love diagrams!)

A snippet of the report on India's role in the world wide diversion scene:
"A joint investigation by the DEA and India’s Narcotics Control Bureau (NCB) in 2005 led to the dismantling of a major international pharmaceutical drug organization that was distributing controlled pharmaceuticals such as bulk ephedrine (a controlled precursor chemical) and ketamine (a Schedule III non-narcotic controlled substance in the U.S.) internationally through the Internet. The international drug trafficking ring, responsible for this criminal activity consisted of over 20 individuals in the U.S. and India, and may have had as many as 80,000 retail customers. The 108 kg of Indian ketamine seized in the U.S. was valued at $1.62 million. The total amount of U.S. money and property seized in this investigation was $2 million dollars in India and $6 million in the United States. In another joint investigation, DEA and NCB cooperated to take down another Internet pharmacy, resulting in the arrest of seven individuals in the United States and five in India.

Subsequent joint investigations have shown the continuing use of the Internet and commercial courier services to distribute drugs and pharmaceuticals of all kinds from India to the U.S. and other countries. Although ephedrine seizures within India were down in 2007, one seizure in the U.S. in September 2007 found 523 kg of ephedrine
shipped through commercial carrier from India through the U.S. and headed to Mexico. The shipment was disguised as green tea extract.

India is also increasingly emerging as a manufacturer and supplier of licit opiate/psychotropic pharmaceuticals (LOPPS), both organic and synthetic, to the Middle East, Pakistan, Bangladesh and Afghanistan. Some of the LOPPS are licitly manufactured and then diverted, often in bulk. Some of the LOPPS are illicitly manufactured as well. Indian-origin LOPPS and other controlled pharmaceutical substances are increasingly being shipped to the United States. DHS Customs and Border Protection are intercepting thousands of illegal “personal use” shipments in the mail system in the United States each year. These “personal use” quantity shipments are usually too small to garner much interest by themselves, and most appear to be the result of illegal Internet sales."

Now to crunch the numbers

Exporters (KGs)

Pseudoephedrine	2006
India	301,068
Germany	229,700
China	50,279
Taiwan	45,830
Switzerland	41,519
Sub-Total	668,396
United States	36,715
All Others	17,224
Total	722,335

Ephedrine	2006
India	185,804
Germany	33,200
Singapore	14,550
United Kingdom	7,300
China	6,152
Sub-Total	247,006
United States	596
All Others	8,132
Total	255,734

India is at the top of the exporter list - this is troubling.

Importers (KGs)

Pseudoephedrine	2006
United Kingdom	140,600
Singapore	45,400
Thailand	43,955
Mexico	43,428
Switzerland	38,891
Sub-Total	312,274
United States	171,195
All Others	306,380
Total	789,849

Ephedrine	2006
South Korea	17,150
Indonesia	15,407
Singapore	12,750
United Kingdom	9,200
France	7,200
Sub-Total	61,707
United States	89,624
All Others	35,394
Totals	186,725

Here is what is interesting: compare the amount the US Imports to the legitimate amount we claim we need; Table: Annual Legitimate Requirements Reported by Governments to the International Narcotics Control Boards (source: INCB); seems like the US is short of a legitimate demand for around 100,000Kg.

the entire report can be found here.