The Punjab Chemists Federation (PCF) is planning to boycott all the products of MSD Pharmaceuticals, Mumbai unless the company implements the conventional system of trade margins and mode of payments, the Federation informed the company.
In the letter to the company’s Director (D&L), the secretary of PCF, Yogesh Mahajan, said the Federation will be forced to approach the Competition Commission of India to sort out the issues arising out of the violation of conventional trade agreements between MSD and stockists. The company should revert to the old payment policy of 21 days credit period. It changed the policy by cutting short to seven days, he said.
His letter demanded the company to supply the medicines to every stockist irrespective of turnover and settle all the problems with regard to non-moving and expired drugs. The letter of Mahajan alleges that the company has started violating the trade agreements after its acquisition of the two big players, Fulford India Ltd and Organon India Pvt Ltd.
While speaking to this reporter Mahajan said the director (D&L) of MSD, based at Gurgaon is violating all the trade norms despite protests from several stockists. He said if the company is not willing to supply its products to all the members of their organisation, complaints will be lodged against the company with department of pharmaceuticals and Drugs Controller General of India (DCGI).
“MSD acquired Fulford India Ltd and Organon India Pvt Ltd one year ago. Both the MNCs were practising the usual trade policies of giving seven days credit period for depot town stockists and 21 days credit period for other stockists. The company got permission from AIOCD to market their products all over India. But they have changed the payment policy with the support of AIOCD and demanded payments in advance. When stiff objection arose from stockists, they agreed to supply against advance cheques and refuse supply to all stockists. This is violation of all business ethics,” Mahajan said.