The small scale pharma sector, with support from different like-minded organisations and the Left parties, will seek a judicial inquiry by the next government at the Centre into how the policies and functioning of different departments over the past years with 'cross purposes' led to major lapse and caused irreversible damage to the SSIs by denying relief and initiating harmful measures.
The CPI general secretary A B Bardhan has already taken inputs on the various issues from the industry and assured that the matter would be raised with the Prime Minister as soon as the new government comes in the office. Taking a lead in the effort to highlight the plight of the sector before the next government, SME Pharma Industries Confederation has already sent a letter to the PM office on these issues, besides shoring up support from different quarters to push the matter by briefing them comprehensively.
"The lapses are unpardonable in view of irreversible damage done. Pharma SSI, responsible for affordable drugs in India, is sought to be eliminated regardless of revenue loss, unemployment and price rise being a consequence. Repeated requests for relief have been ignored despite Prime Ministerial intervention also in one case. A judicial inquiry may be instituted to ascertain how various departments worked at cross purposes and caused the damage despite the manifesto of UPA to provide affordable drugs to the common man relief may please be provided to SSI in public interest," the SPIC letter said.
"We will take up the matter with the new government that comes to power so that our people can get medicines at affordable prices," Bardhan assured, after taking note of the different issues concerning the small scale sector as raised by the SPIC.
Referring to the case of prednisolone acetate ophthalmic suspension, the SPIC said the government had allowed many such items carrying more than ten times higher prices. "Unless there is data to prove its quality and efficacy are ten times better, it cannot be justified. Indian quality is better. It will also be naïve to believe that the product was imported in as much quantity as it is being sold because absolutely similar product, is locally available at very cheaper prices Government has created an ideal situation for producing fakes and later policies to get rid of fakes will be framed," the association said.
5000 SSI units having one million employees produce about half of the Rs 70,000 crore worth of medicines produced annually. Several big houses source their production from SSI. The Department of Pharmaceuticals (DoP) is the administrative department for the industry while health ministry taking care of regulatory affairs. The MSME - Micro Small and Medium Enterprise Department is supposed to generally look after the interests of SMEs but stands totally ignored. As experienced, fiscal issues are arbitrarily decided by Finance Ministry. Pharma is the only industry which is regulated and price controlled, it said.
The SPIC also cited issues of MRP system, excise free zones, Schedule M, closure of SSIs, CDA bill, FDC issue, minimum turnover stipulation for central procurement, and increase in fee for grant and renewal of licences which all have added woes to the SSI sector. The association also explained in detail how the death of SSI sector was making a direct impact on the prices of drugs and affordability to the larger population in the country.