The drug distribution system in India has undergone a paradigm shift, with powers shifting from one hand to the other over the years. Changes in the market dynamics have led to uprising of a completely different industry consisting of  retailers, wholesalers, druggists and chemists which gave rise to newer trends and better business.

Today the retailers, wholesalers and chemists play a very important role in this whole supply chain of the drug distribution system. Earlier every pharma companies used to have their own distribution network with separate depots and warehouses specifically catering only to their products.

According to Jashvant Patel, president, Federation of Gujarat State Chemists & Druggists Association (FGSCDA), “The contribution of the retail chemists and pharma distributors and stockists from Gujarat in the overall pharma business in terms of percentage of sales compared to all India pharma sales, is approximately 5 to 6 per cent.”

FGSCDA, a state affiliate of the 5,50,000 strong All India Organisation of Chemists and Druggists (AIOCD) is constantly engaged in preparing the members to compete with the organised chain stores and making them aware of possible future competitions.

“Our main focus is to educate our members in the latest pharmacy trends, latest regulatory changes and keeping them updated on the changes that are taking place in global scenario,” informs Patel.

The association spearheads the causes of over 14,000 members in Gujarat which consist of chemist, druggist, retailers and wholesalers from the state.

With a view to protect the interest of its members, FGSCDA has formulated many ways to tackle issues faced by them. One of its notable achievement is that, through its efforts it was able to float a company for retailing of drugs and medicines in the state of Gujarat. Other state affiliates to have floated companies on the similar lines are All Kerala Chemists & Druggists Company Ltd and Maharashtra State Chemists and Druggists Association Ltd.

This trading company called Fraternity of Gujarat Safe Chemists and Druggists Association buys medicines in bulk, FGSCDA feels that this will not only help them in sustaining their market share in the pharma retail business, but also will help them to compete by way of giving discounts to their customers.

Able platform
FGSCDA has been representing the issues of the industry in the state at different levels.  Patel informs, “As far as retailers business is concerned,  there are many issues that the government needs to address urgently. We feel that there are lot of changes that needed to be made in the present Drugs & Cosmetics Act and Rules. Only after that we can say that the act and rules are compatible for  the demands that are present in the Indian and global scenario.”

He adds that one of the most disturbing factor that is affecting the industry across the country is the practice of dispensing medicines  by the medical practitioners and hospitals on their own. “The department is blindfold on this mushrooming malpractice as license is issued without applying any logic. We are hopeful that the government will take some stern steps to curb this practice that is slowly but effectively weakening the industry,” Patel warns.

Suggestions
Patel feels that if the government wants to see the business in the state reach to another level it should take some proactive steps. He stressed that the state regulatory office before issuing the license should have an active plan to go by “Unlawful practice of sale of medicines adopted by practitioners and hospitals must be stopped. This will ultimately leads to increase in the tax revenue of the state government also. Retailers in Gujarat are more entrepreneur and are ready to adopt changes in dealing with customers and are also ready to prepare themselves for Global competitions,” adds Patel.

Some of the issue that the association is following up with the government are the direct selling of medicines by doctors and hospitals, direct selling of medicines to customer by companies under the different heading which is understood to be increasing day by day.

FGDCA is also focusing on the availability of thousands of multi brands. Patel point outs, “We are very vigilant about the entry of spurious and counterfeit medicines and are constantly on the watch to avoid any such entry in to our trade. Apart from that our agenda is also to ensure a stop to the entry of non standard and bigger strips packing and non standard prescription practice which ultimately leads to strips cutting leading to quality questions and loss to the trade etc.”

He states that though the department is working very efficiently in other areas and it has proven its capabilities under Dr H G Koshia, there are still some improvement that needs to be effected.

FGDCA hopes that the government will take initiatives to tackle these issues by framing its own rules to govern D&C Act and its rules, so as to eliminate all the loopholes for the growth of the industry at large.