Even as the All India Organisation of Chemists and Druggists (AIOCD) is facing opposition from various states, a rebel group of traders is rallying for a new national pharma distributors' organisation. The new organisation with the proposed name - All India Chemist and Distributors Federation (AICDF) - is expected to be announced within a couple of months.
The group, which may resemble the AIOCD structurally, will have 21 state affiliates within the first few months of operation. The association leaders are in talk with local associations and groups in various states to form the local affiliates. The initiative is on with the formation of state level associations in Maharashtra and Madhya Pradesh, according to trade sources. The All Maharashtra Chemist and Distributors Federation (AMCDF) and a similar organisation in Madhya Pradesh were floated in the beginning of 2008.
"Currently, traders from at least 21 states have shown their interest to join our movement and are on the way to bring up the national organisation as soon as possible. However, we think that this is not the appropriate time to reveal much about our programmes," said the spokesperson of the new organisation.
"The new organisation will act towards grievances against the monopolistic activities of the existing organisations, which lead us to think for our own association. With the new association, we could fight for our grounds with the industry, government and the rival organisations," added the source. Traders who were ousted from AIOCD and its affiliates for non compliance of its orders are currently joining with the new association.
A number of affiliates of AIOCD including MSCDA are facing serious charges even as Monopolies and Restrictive Trade Practice Commission (MRTPC) is conducting probe on the alleged restrictive trade practices of the association against the organized corporate retailers. It may be recalled that the recent action by the Kerala government against the office bearers of All Kerala Chemists and Druggists Association (AKCDA) led to cancellation of distribution licenses of two office bearers including the president of AIOCD, A N Mohan.
The AIOCD is also indulged in trade restrictive practices, putting embargo on pharmaceutical companies and traders and restricting business activities of its own members, alleges trade sources. The new association is planning to gather all the traders to protect their rights from the various existing traders' bodies in general, sources said.