New Delhi, June 8 -- Paraguay has initiated the process for cancelling a contract with Bharat Biotech for Covaxin vaccines over quality control issues, people familiar with the matter said on Tuesday.

The contract was put together with the help of Taiwan, which has close ties with Paraguay, as part of efforts last year to ensure that the South American country did not turn to China for Covid-19 vaccines.

The development was confirmed by Paraguay's health minister Julio Borba, who told the ABC news channel on June 1 that the government is in the process of cancelling the vaccine purchase agreement with the Indian firm for the acquisition of one million Covaxin vaccines.

"It is there (the agreement), but it is also in the process of closin...