The Confederation of Indian Pharma Industry -Small Scale (CIPI) is organising a daylong dharna and protest march in New Delhi on March 18, seeking changes in the recently introduced practice of MRP based excise duty calculation on medicines. The protest action is co-sponsored by the Indian Drugs Manufacturers Association (IDMA).
According to organisors, about 5000 industry representatives from all parts of the country are expected to participate in the march. The CIPI has invited political leaders from all parties to address the dharna and express support for their cause.
The organisors allege that the ministry of finance, by a unilateral decision has levied central excise duty on the retail prices of all medicines vide notification No 02 / 2005 CE NT dated January 7, 2005 sacrificing the hitherto accepted formulae of levying it on the
factory price of the products.
"This measure of government shall render a very serious blow to the very existence of the industry. We had therefore recommended to the government to reduce excise duty on pharmaceutical formulations from 16 per cent to 8 per cent. We have made in the past a number of representation to the government explaining lethal effects of the retail price based central excise duty on medicines and also participated in various meeting at North Block for roll back of this notification. In spite of all our efforts, and assurances from UPA convenor Sonia Gandhi and Lok Sabha Speaker Somanath Chatterjee, the ministry of finance has not given any relief in this matter." they said.
The lack of support from the government has compelled CIPI and IDMA to organise a dharna, protest march and hunger strike, to draw the government and public attention to the issue, they explained. The CIPI has invited MPs A B Bardhan, Roop Chand Pal, Bebabrat Biswas, Abani Roy, Amar Singh, Jai Rana Ramesh, Guru Dass Gupta, Nilotpal Basu, G Dev Rajan, Manoj Bhattacharya, Ajay Maken and C Rama Chandraiah to address the dharna.
CIPI is the representative body of small-scale pharmaceutical manufacturers from all over the country numbering about 8000 units. The member units of CIPI provide an employment to about 10 lakh persons. The combined turnover of CIPI members is claimed to be over Rs 7000 crore in the domestic market and in about Rs 2000 crores in terms of exports. The CIPI claimed that the SSI segment of pharma industry is responsible for maintaining the priceline of drugs in our country.