In a meeting called by the government, the drug traders in Kerala assured the government that either the stockists or the wholesalers would not create supply shortages in any part of the state in the event of GST in force.
Instead, they will ensure availability of all kinds of medicines with the retail shops everywhere in Kerala.
But, according to drug control officials, there is shortage of about 20 branded products in many parts of Kerala and some of those drugs are from the essential drug list.
In addition to GST implementation, the latest DPCO has also impacted in the purchase orders of wholesalers for medicines from companies on account of reduction in trade margins. Sources informed Pharmabiz that there was shortage of widely used medications like pain killers, antibiotics, cardiac and cancer drugs. The major affected districts are Thiruvananthapuram, Kozhikodu, Kannur, Idukki, Alappuzha and Ernakulam.
However, the generic versions of all these essential drugs are available in government hospital pharmacies. “Enforcement officials are verifying the stocks in the medical shops and a clear picture about the shortage will come out in next two days”, said a senior level officer at the drugs control department.
In a meeting called by the health secretary at the state capital two days ago, in the event of reported shortages of medicines in hospitals and private pharmacies, office-bearers of the chemists & druggists association (AKCDA) and wholesalers groups assured the government that they would immediately supply the requirements as per orders. While talking to Pharmabiz, A N Mohan, president of All Kerala Chemists & Druggists Association said there were some shortages in certain districts including the state capital, but it will be solved in another two days time.
Mohan, who is also the national vice-president of AIOCD, pointed out that Kerala was the only state in the country which had a good supply chain system in drug business and practice of good business ethics among traders. He said AKCDA has wanted all the small scale retailers (with less than an annual turnover of Rs. 20 lakhs) to do GST registration, though it is not compulsory for them at present. There are 3,000 unregistered small scale traders and 13,000 registered (VAT registration) traders in Kerala.
The state government has assured the traders a refund of 40% of the transitional loss as relief to the traders due to GST implementation. Even then, there will be a loss of Rs. 80 crore which has to be refunded by manufacturers. Mohan said the government has wanted the traders to maintain proper distribution and availability of all drugs without any price increase in all places of the state.