The pharma industry in the country will have to spend about Rs 500 crore just to print 'MRP inclusive of all taxes' and Hindi letters on the drug label. These additional costs are out of the blue for the industry. There is also a big hue and cry on the unrealistic deadline of October 2, 2006 for the appendage: 'MRP inclusive of all taxes.'
It is estimated that for the new label indicating 'MRP inclusive of all taxes' alone, the pharma industry will have to cough up Rs 200 crore.
The small and medium drug units which are going through a rough patch with the imposition of excise duty on MRP and the movement to excise free zones are disillusioned with the Union government's call according to industry sources.
The change in artworks and old packaging cartons becoming obsolete are just uncalled for, stated V Madhusudan, President Indian Pharmaceutical Association, Karnataka and Executive Vice President Technical, Medreich Limited
Very soon the government will also demand the addition of a dual language label, which is again another expense for the sector. In fact the government should have given a time frame of 6 to 12 months for both the inclusions. Now the industry is forced to go ahead with the new label-printing deadline stating 'MRP inclusive of all taxes'. This is a serious problem for the industry, which is already reeling under the spell of excise duty on MRP and the shift to excise free zones, pointed out Madhusudan.
Karnataka manufacturers are already working on the label change. The Union government as in an era of globalization should not force upon the dual language on labels; English is the language of communication for a knowledge drive sector like pharma. If the government pursues with the dual language label, there is all likelihood that states could demand vernacular language in the label, stated Jatish N Seth, secretary, Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA) and director, Srushti Pharmaceuticals. " But for the benefit of the masses, the name of the drug in 'Hindi' should suffice the purpose," he added.
According to VR Kannan, pharma consultant, new labelling exercise of 'MRP Inclusive of all Taxes' is a small modification and companies cannot resist this move. The change is major in terms of a policy but minimum in terms of physical work with regards to allocation of time for the change in spite of the commercial calculations involved.
With reference to the dual language issue on the labels, Kannan stated that it is crucial for the government to take the opinion from all the State, which do not have Hindi as a prime language.
Though for the present, the new label design will not involve much effort and time because of cylinder printing procedure, major artwork changes will be a reality during the dual language inclusion. However, it is still not too late for the industry to request the government to make dual language as optional and not mandatory, informed Kannan.