The one-day strike called by the All India Organisation of Chemists and Druggists (AIOCD) all over the country has evoked a good response from the trade in Tamil Nadu. Almost all retail outlets in the state, barring few shops in Chennai city, downed their shutters.

According to Anandan, General Secretary, Tamil Nadu Chemists and Druggists Association (TNCDA), the strike has been very successful in Tamil Nadu. "The initial report we have is that on the whole the strike has been successful though we have reports that some of the outlets in Chennai and southern districts were opened for business," he said.

The TNCDA had agreed to join the strike called by AIOCD in protest of the implementation of Value Added Tax from April 1, 2003. The Association had argued that VAT would push up the prices of drugs by almost 16.5 per cent, and wanted the Tamil Nadu government to postpone the implementation to June this year. It had also argued that the medicines be brought under the Essential Commodities Act so as to maintain the tax structure affordable to the general public.

Owing to the announcement of implementation of VAT by the Tamil Nadu government, there has been a downtrend in drug purchases by retail outlets and also the pharmaceutical distributors. While the latter never placed purchase orders with the companies owing to the confusion on the set off on stocks existing before the implementation of VAT, the trade has not been purchasing medicines on two counts viz-a-viz; non purchase of medicines by distributors, and secondly over the tax that had to be put on the maximum retail price (MRP) of the drugs. Currently, they were charging 8 per cent on the MRP while dispensing the medicines.