The drug traders in Kerala have demanded the State Government to probe into the recent drug purchases done by the State Government's retail chain arm, State Civil Supplies Corporation Ltd (Supplyco).

Pharmabiz had reported earlier the All Kerala Chemists and Druggists Association (AKCDA), the only pharmaceutical drug traders' agency in the state, had enforced embargo recently against Alembic, Novartis India and Themis Healthcare for directly supplying drugs to Supplyco, without the knowledge of AKCDA. The boycott was later called off following assurance from the companies not to supply thereafter.

According to informed sources, Supplyco has purchased drugs worth more than Rs 2 crore in recent times flouting its own norms, which includes Rs 50 to 60 lakh worth of purchases directly done by one agency in Kochi on behalf of Supplyco. It was necessary to probe whether generic drugs were being sold through the Maveli and Neethi outlets of Supplyco and Consumerfed, which is not entitled to do so.

AKCDA sources pointed out it was wrong on the part of the State Government to procure life saving medicines in bulk (similar to procurement of provisions to other Maveli stores and Labham super markets) and sell it to people like any other commodity. It is a known fact that most of the Government run medical stores lack many of the essential and common medicines that are required for the public. The claims of these stores to offer 10 to 30 per cent reduction in drug prices could not be possible, at least in the case of controlled drugs, which give the retailer a maximum margin of only 14 per cent. Since government run, most of these outlets are a law unto themselves, and the drug control department officials rarely inspect them, alleged AKCDA sources.

Further, the mushrooming of co-operative sector run Neethi medical stores also need monitoring. Though the stores have pharmacists, the shops are set up and managed by office bearers of co-operative societies, who lack any scientific knowledge on pharmacy practices. Many of the mushrooming Neethi shops in the co-operative sector are competing each other with unethical trade practices.

Considering these aspects, the government and respective authorities should thoroughly revamp the existing system of licensing, drug procurement and distribution of medicines, said the sources.

The Rs 450-crore Supplyco, the largest retail chain dealing in essential commodities in Kerala with its 842 Maveli stores, 20 mobile Maveli stores, 106 Labham markets, 10 super Maveli stores, and a few petrol bunks and LPG outlets, also runs 38 Maveli medical stores in the state at important towns and taluks. The Maveli medical shops offer discounts upto 30 per cent from a minimum 10 per cent for medicines, and according to informed Supplyco sources, the plans are to increase the number of medical shops to at least 150 in near future. Within the next 2 months, Supplyco is starting medical stores at Adimali, Haripad, Eramallur, Kacheimukku, Varkkala, Kecheri, Kodungallur, Nadapuram and Iritty in the state.