While hailing the government of Tamil Nadu for exempting essential drugs like insulin from the purview of Value Added Tax (VAT), the Tiruvarur District Chemists & Druggists Association (TDCDA) has in a letter to the Chief Minister wanted to take measures to print separate MRP for the drugs sold in the state of Tamil Nadu.
The general body of the TDCDA has observed that the benefit of the VAT exemption is not reaching the consumers as the MRP printed on the drugs is inclusive of VAT. So, separate MRP, after deducting VAT should be printed exclusively for the sale in Tamil Nadu, said A Singaram Tiruthuraipoondi, president of the association.
In the latest budget of the state government, it has given 5 per cent VAT exemption to all essential drugs sold in the state.
The general body has unanimously passed another resolution demanding to the union government to bring one regulation or act advising the physicians to prescribe all medicines in generic terms. The traders found that this would help the consumers to buy their medicines from their own choice at affordable prices.
The traders said presently the pharma trade is controlled by wholesalers and corporate pharmacies who are selfish in their dealings. The district organisation has passed a resolution in this regard which states that the pharma business should be brought back into the hands of the traditional chemists and druggists.
In another resolution passed by the district trade body, it has alleged that the margin allowed for R&D is not used at all. It is being shared by the manufacturers and the prescribers. So government must bring all the drugs under Drugs Price Control Order (DPCO) and reduce the prices of all drugs for the benefit of the consumers and traders.
The traders made an allegation that certain drug marketing companies are not providing the agreed margin to the retailers. In this case, the state chemists and druggists association and the national body, AIOCD, must interfere to enable the druggists receive the agreed margins, said L Babu Mannargudi, secretary of TDCDA.
The association has wanted the government to give the subsidy to the private retail pharmacies as given to the pharmacies in the cooperative sector. Since the cooperative stores are selling medicines on 12 per cent discounted rates, it badly affects the existence of the private pharmacies, the association said.
Last week the Tamil Nadu Chemists and Druggists Association to which TDCDA is affiliated to, in a press conference announced that their members were ready to sell all essential drugs deducting 5 per cent VAT.