While the drug traders in the country are likely to support the Union Chemicals Ministry's move to announce the deadline for implementation of uniform maximum retail price (MRP) inclusive of taxes on drugs as October 2, 2006 instead of July 1, 2006, there are apprehensions that the move may cause drug shortage in the country if the Government stipulates less timeframe for phasing out existing stocks of drugs.
Sources say that the notification is likely to come out within a few weeks and confusion still prevails over the time frame on switchover period for the existing stocks of medicines. Earlier, the Government's proposal was to ensure all packs, marketed before the commencement of the proposed notification, would also have to contain MRP inclusive rates within three months of notification. Later, owing to the industry pressure, this clause was diluted and it was decided to enforce the rule applicable only for the new packs marketed since the deadline need adhere to the changed rules.
Sources note that if the Government decides to enforce the rule applicable with effect from 2nd October, and even if the notification comes out by end of June or early July, the industry and trade will get only three month's time for implementing the rule. This means the industry may be forced to either sell the existing stocks at the earliest, which is not practically possible. If the manufacturers are forced to withdraw the existing stocks in bulk, it may lead to shortage of many essential medicines in the market, warn trade and industry circles.
"We are waiting for the notification. If we don't get adequate time, it may cause shortage, which we never know now. Our demand is to have 6 per cent uniform tax all over India and minimum six-month's time for implementing the rule. We will fight against the notification if we don't get adequate time" said Daara B Patel, secretary general, Indian Drugs Manufacturers Association.
According to A M Mohan, President, All India Organisation of Chemists and Druggists (AIOCD), the association is likely to support the Government move to implement the rule since 2nd October and a decision on this will be taken at the national executive committee meeting on 23rd June.
As a solution to avoid the chances of possible drug shortage, AIOCD had suggested the Government to either give six months time for ensuring all medicines carry MRP inclusive of taxes or not to mention any timeframe in the notification for phasing out the existing stocks and restricting it applicable only for medicines produced after the deadline, he said.