The SME Pharma Industries Confederation (SPIC), a confederation representing mostly the small scale units in the country, has sought Prime Minister Dr Manmohan Singh's intervention on several issues plaguing the small scale drug industry in the country including the implementation of Schedule M & Schedule L and removal of anomalies of MRP-based excise duty collection.
In a letter sent to the Prime Minister, SPIC said that both Schedule M and Schedule L should be mandatory only for exporting units unless Najma Heptullah Committee recommendations are implemented. The Najma Heptullah Committee, constituted by the government to study the impact of Schedule M implementation in the country, has already completed its report and is expected to submit its report to the government any time now.
The SPIC also demanded that the anomalies of MRP-based excise collection should be removed as its purpose, to increase revenue and bring down the drug prices, has been defeated due to several anomalies in the scheme announced by the central government in 2005. "While the government has lost revenue, the prices of drugs went up as the companies in the non-excise zones printed higher MRP on labels as there is no excise on MRP, defeating the objectives of the changed modality," SPIC in its letter said.
Abatement on medicines should be increased to 60 per cent as per EAC recommendations to ensure SSI exemption limit is not truncated and SSI exemption should be increased to Rs 5 crore as it has suffered immensely. Anomalies are duly acknowledged by Dr Pronab Sen Committee as well as the EAC.
The SPIC also sought Prime Minister's intervention on the Drugs and Cosmetics Amendment Act 2006 which stipulates stricter punishment to the manufacturers of spurious drugs. "The Bill should not be rushed through for notification till safeguards for honest manufacturers are provided," SPIC said.
Asking the Prime Minister to save the drug industry of the country going into the hands of multinationals, SPIC said Pharma SME needs to be safeguarded as they are the only impediment in the path of Multinationals who are poised to takeover the "Biggest Market in the World" for profiteering.