The All India Chemists and Distributors Federation (AICDF), the newly formed national body of pharmaceutical traders, is up in arms against pharma companies for denial of stocks to distributors and monopoly trade practices of its rival chemist's group. The new association, which is in final stages of formation, will be launched formally at New Delhi, soon.
The AICDF alleged that many of the pharmaceutical companies, including several MNCs are refusing supply to distributors fearing action from a group of drug distributors under a different banner. The Association is planning to take legal action against the companies for refusing supplies under Essential Commodities Act, 1955 and relevant sections of Drug Price Control Order, 1995.
"The denial of supply to certain distributors without any rationale is not only an offence to the relevant distributor, but also amounts to refusing essential lifesaving medicines to the patient community. Our decision is to take action including legal proceedings against the companies refusing supply to eligible distributors," said Narendra Jain, national convenor, AICDF.
A group of distributors is understood to be working closely with these companies to deny supplies to certain distributors. "We will extend support to the traders all over India to reinstate drug supply from the pharma companies in such cases," he added. Though he refused to give out the name of the group, the rebel association is suspecting All India Organisation of Chemists and Druggists (AIOCD) is behind it.
A national level meeting of the organization, conducted recently at Mumbai, has also decided to discuss with the companies about the mega distribution deals with distribution companies. Pointing out that entering into mega distribution deals with certain distribution companies for exclusive product supply also comes as violation of the law the organisation has asked the companies to take AICDF into confidence and to consider its views before entering into any such deals, averred Jain.
The protest comes as a result of recent attempts from the distribution company All Indian Origin Chemists and Distributors Ltd (AIOCD Ltd) of AIOCD to tie up with pharma companies for exclusive distribution alliance.
The AICDF has also decided to appeal to the central government for a subsidy in electricity tariff and in the reduced price of generators for drug storage in the distribution companies and retail shops. The distribution chain is finding it difficult to cope up with the current power tariff, say federation leaders.
Meanwhile, AIOCD and its Maharashtra state affiliate has obtained caveat from the Mumbai High Court and the Bombay City Civil Court at Mumbai against five individuals including the leaders of AICDF and former members of AIOCD in the middle of March 2008. The caveats are to check any action from the court prior to a written notice to the proposed defender, in case or a legal petition filed by the plaintiffs before the relevant court.