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IDMA, OPPI not to support AIOCD proposal on uniform trade margins
Our Bureau, Mumbai | Wednesday, April 26, 2006, 08:00 Hrs  [IST]

The Indian Drugs Manufacturers Association (IDMA) and the Organisation of Pharmaceutical Producers of India (OPPI) said both the bodies are yet to consider All India Organisation of Chemists and Druggists (AIOCD) proposal on implementing uniform trade margins for all drugs, inclusive of excise duty.

Reacting to the pharmabiz.com report on 'trade and industry moots uniform trade margins for all categories of drugs', the associations clarified that they were not considering to implement uniform trade margins, at a rate of 10 percent for wholesalers and 20 per cent for retailers inclusive of excise duty, across all categories of drugs.

"To put the records straight, our present MoU with AIOCD dated September 12, 2003 clearly states - 'It was clearly agreed that trade will not demand any margin on excise duty or local taxes if all-inclusive MRP system was put into effect and that the existing system of calculating trade margins on net price excluding excise duty and local taxes shall continue except that wherever trade margins are at present calculated on prices inclusive of excise duty, status quo will be maintained. Regarding Octroi, there would be no reimbursement of second point" noted Daara B Patel, secretary general, IDMA and Dr Ajit Dangi, director general, OPPI, in a joint statement addressed to Pharmabiz.

"IDMA and OPPI are considering the proposal on uniform trade margins from AIOCD, put forward at a joint meeting of the representatives of the three associations at a joint meeting held a few days ago. IDMA and OPPI informed AIOCD that they have to discuss the details with their members and would give a feedback soon", the Pharmabiz.com report had said.

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