The situation is grave in Andhra Pradesh following the indefinite strike launched by the Druggists and Pharmaceutical companies. Talks between the government and the AP Chemists and Druggists Association failed to end the drug strike and the government said it has finally decided to invoke the Essential Commodities Act (ECA) to break the strike.

However, the government was not willing to say when it would strike on the agitating medical shops and pharmaceuticals. The Chief Minister as well as the Health Department along with the Drugs Controller are perturbed over the worsening situation. Soon the government will invoke the ESA and the ESMA, the State Commercial Taxes Minister K Ramakrishna told the Pharmabiz Correspondent here today.

As patients all over the State struggling to buy medicines - the worst hit city being Hyderabad - the government spent the day cajoling the recalcitrant union to end its strike, which is aimed at back-heeling the VAT burden to the manufacturer. The chief minister met the minister, the minister the union leaders and senior officials met each other, but the sum total of all these parleys was: No deal.

"We appeal to the chemists not to compel us to invoke the Act," the Minister said after his talks with the striking union.

However the government is making efforts to ensure that there was no shortage of medicines at hospital pharmacies. The Drug Control Administration (DCA) has been told to hold discussions with traders to keep open at least one shop in every ward. On the fourth day of the strike, the government spoke of chalking out a contingency plan to tackle the situation, if the standoff did not end.

Primpost, a drug given to expectant women when they get labour pains, is out of stock. So is Cerimprime gel, another drug used during delivery.

The list of out-of-stock drugs is long: Cancer drugs adramycin, Cisplatin and Etsocid. Glyzedin, which is taken by diabetics. Solumedrol, a life-saving drug. Nicardia, a medicine that checks hypertension and blood pressure, besides a range of cardiac drugs.

On the fourth day of the strike shortage of drugs pegged by industry sources at 75-80 per cent.

Stockists had stopped purchasing drugs from pharmaceutical companies almost 15 days ago, fearing that drug prices will drop once VAT came into effect. While some new pharma companies even compensated stockists for the losses they might incur because of a change in drug prices, stockists have not supplied medicines to chemist shops.

Stocks at chemist shops in hospitals are nearly exhausted, as people have thronged these stores in the wake of other shops across the city shuttering down.

Medical representatives of all leading as well as new pharmaceutical companies were out in full force visiting every pharmacy shop in hospitals - only to find that all medicines there were exhausted. Cardiac and diabetes drugs are mainly out of stock, they said.

The plight of patients continues with even syringes and intra-venous sets going out of stock in some government hospitals.

The AP Chemists and Druggists Association, which has called the strike, forced them to close shop. "The main problem being faced by patients is in finding syringes and IV sets for glucose and even the scalpel set that is putt on veins," said a druggist, who had tried opening his shop during the strike.

The government has also faulted druggists who are demanding collection of tax on first point of sales on maximum retail price (MRP). With first-point taxation based on MRP, dealers want to remain outside the purview of tax, which is not good in any tax system, officials said. "Their contention that prices of drugs would increase is totally unfounded. The rate of tax on drugs have been cut down from 10 per cent to 4 per cent and there is
no rationale in their argument," they added.