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Flood-hit pharma industry asked to pay Rs 35-50 cr for disposing damaged medicines
P B Jayakumar, Mumbai | Monday, August 29, 2005, 08:00 Hrs  [IST]

The pharmaceutical manufacturers and traders are yet to clear the huge stocks of damaged medicines even after one month of the floods in Maharashtra, as the industry would have to cough up another Rs 35 to 50 crore for incinerating these damaged drugs.

It is learnt that the industry would have to pay a minimum of Rs 15 to 20 per kg, depending on tablets or liquids, for incinerating the medicines as per the guidelines for disposing the damaged drugs. Various industry sources claim the damages are to the tune of 25000 MT of medicines valued about Rs 900 crore, which means the industry would have to spend an additional Rs 35 to 50 crore for disposing off the damaged stocks.

The Maharashtra Pollution Control Board (MPCB) is learnt to have assigned a few solid waste management companies as the exclusive agencies for disposing off the medicines as per 'scientific standards'. Bhiwandi, which houses about 33 godowns of major manufacturers, have to rely upon the only company assigned by the MPCB, as the State Government is against the idea of letting the individual units or stockists incinerate the stocks themselves.

The state FDA is also keen to ensure that the damaged drugs are disposed off properly under government surveillance to prevent chances of damaged drugs re-entering the market. The tough posture of various arms of the government, plus the additional financial burden has caused inordinate delay in disposing off the drugs even after one month. Certificates from the PCB, police and state FDA are necessary to claim for insurance and the stalemate also delayed the process for claiming insurance, said sources.

Meanwhile, the state health department has started sending notices to the wholesale dealers and manufacturers to immediately clear the damaged stocks. Those who received notices include top-level leaders of the drug traders, said sources.

They point out while the state is getting huge amount of funds as relief to the victims of the floods, it is merciless on the part of the State Government to force the pharma industry, which was a major victim of the floods, to spend more money for clearing the damaged goods. The government should at least offer a subsidized rate for disposing the stuff, if not taking up the responsibility to incinerate the same. The additional financial burden on the industry is causing inordinate delay in clearing the damaged goods and repairing the godowns. Though the issue came up for discussion at a meeting of the state FDA officials, MPCB, health department officials, a section of manufacturers and traders, the industry is yet to get a favourable response to solve the crisis, said sources.

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