The Chemists and Druggists Association Retail, a newly formed Chennai based trade body for retail drug stores, will soon be signing a MoU with the Pharmaceutical Distributors Organisation (PDO) in a bid to safeguard the interests of the pharmaceutical retailers. Discussions for the same are on.

Some of the issues that would form the core part of the MoU are: 1 On account of expiry and breakage, 75 per cent credit note for MRP should be given. 2. In case, the retail trade suffers any profit loss (as per DPCO), the PDO should co-operate to safeguard retailers' interests. 3. They should not encourage discounts offered by the chain stores and service to the small retailers should continue. 4.The association should not indulge in any business activities but should strive for the welfare of its members. 5 The PDO should safeguard the interests of the retailers as and when the manufacturers reduce the margins of retailers.

"We retailers are very much in touch with the public and it is important that our interests are safeguarded. That is why this measure is being taken. This is one of the reasons why we will be requesting the co-operation of the PDO," said N Balaraja, general secretary Chemists and Druggists Association Retail.

Speaking about yet another issue, Balaraja said, "Now after the VAT issue came up, most of the retailers are very much worried about the tax loss as on December 31, 2006 stocks. But the manufacturers have assured the wholesalers that out of the 10.5 percentage; the difference amount will be adjusted. But despite being an important part of their supply realm we are just left uncared for." He said that if this trend continues the C&D Retail will highlight the loss incurred by the retailers to the doctors and take necessary measures. He added that a communication requesting the Tamil Nadu Chief Minister to save the pharma retail trade from losses would be sent soon.

Talking about the VAT, Balaraja said," We have three points in this regard. Either the government should come forward and pay us the tax amount for the stocks up to December 31,2006 or they should give us six months extension so that we can recover the amount by selling the medicines to the customers. Otherwise VAT should be levied from April 2006 so that we wont be affected as the MRP inclusive of taxes medicines will be the ones that will be sold then."