The Punjab Drug Manufacturers' Association (PDMA) has demanded for the implementation of the Dr Pronab Sen and Dr Rangarajan recommendations for the survival of the small-scale units in the country.
The Govt had turned down the Dr Pronab Sen and EAC recommendations on flimsy grounds and the small scale drug units are being victimized, pointed out Jagdeep Singh, president, PDMA in a communiqué to prime minister Dr Manmohan Singh.
"Small pharma industries are in doldrums. The delays in providing relief from MRP-based excise regime and the formation of the Central Drug Authority (CDA) are some of the burning issues bogging down the growth of the sector and tightening the noose around the units.
Further, the small units are subjugated by the large companies, which are asserting themselves with Schedule-L which deals with GLP and notified for objections recently. The units vehemently oppose both Schedule L and the creation of CDA, stated PDMA president.
Though the small units did not expect relief from Schedule-M because it was a quality parameter, the MRP excise duty issue was a not in favour of their existence, he said. Referring to PDMA's earlier memorandum dated Dec 7, 2006 to the PM, he pointed out to the reply by the Minister in the Rajya Sabha stating that MRP based Excise was levied to check evasion of excise duty by manufacturers who get their goods manufactured from other units at a lower price (on which duty is paid) and then sell at very high prices. This also resulted in high trade margins resulting in high cost to consumers.
In this connection, the PDMA clarified that it was the large units indulging in such practice and sourcing drugs, from tax-exempt states. The only difference was that the government was not earning revenues. Such a scenario also encouraged doubling of trade margins..