The government had banned the import of oxytocin formulations and restricted its manufacture to the public sector only from July 1 earlier.
But latest reports say that the scheduled ban has been deferred by two months for now.
Oxytocin is a naturally-occurring hormone that causes uterine contractions during labour and helps new mothers lactate.
But its misuse is widespread in the dairy industry where livestock are injected with oxytocin to make them release milk at a time convenient to farmers. The hormone is also used to increase the size of vegetables such as pumpkins, watermelons, brinjals, gourds and cucumbers.