Faced with strong resistance from the chemists and druggists associations over their reduction of trade margin after the implementation of the new DPCO, the pharma industry has approached the health ministry to intervene by directing the State Licensing Authorities (SLAs) to take immediate action against those who disrupt availability of essential medicines to patients.
This demand comes in the wake of increasing incidents of traders refusing to stock the medicines of manufacturers who have cut down their trade margin by two per cent leading to shortage of essential medicines on account of lower orders placed by distributors. In fact, an industry expert pointed out that since the implementation of the new DPCO, there have been severe shortage of essential medicines in the market due to withholding sale of certain medicines by stockists and retailers protesting against the reduced trade margins.
It is understood that union health minister Gulam Nabi Azad has assured the industry that he will look into this matter at the earliest by taking the necessary steps, which includes possibility of invoking the Essential Commodities Act against those who disrupt the supply and distribution of essential medicines. Ever since the implementation of the new pharma policy in May 2013, there has been strong discontent between pharma companies and trade associations over reduction of trade margins, with stockists in turn reducing their orders leading to scarcity of widely prescribed medication in the market.
Elaborating on this, Dr H G Koshia, commissioner, Gujarat Food & Drugs Control Administration (FDCA), said,“We have been doing lot of initiative to address this matter by setting up meetings with the industry and the trade associations so as to ensure that the health of the patients are not at risk. Considering the seriousness of this matter, we have taken all the possible measure to make the traders understand the legality of this issue and have already send in 100 plus letters to those chemists and druggists who have been resisting this move directing them to refrain from such practice that will put the life of patients at risk unless they want invoke the power of DPCO upon them. Fortunately for us, majority of the members from the trade associations have agreed to cooperate ensuring that there will be no disruption in supplies of key medicines in the state.”
The new DPCO which was enforced from May 15, reduced the prices of 348 essential drugs covering over 600 formulations for the benefit of patients across the country.