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Kerala drug traders to lift ban on Cipla, Abbott India and Blue Cross
P B Jayakumar, Chennai | Tuesday, March 16, 2004, 08:00 Hrs  [IST]

The All Kerala Chemists'and Druggists'Association (AKCDA) is likely to withdraw the weeklong boycott of three leading drug manufacturing firms Cipla Ltd, Abbott India Ltd and Blue Cross after an emergency executive committee meeting held in Kochi last week. The Association has been protesting against introduction of two point taxation on medicines since April 1, 2004 and these companies have not been cooperating it .

AKCDA had enforced boycott of drugs manufactured by Cipla, Abbott India and Blue Cross from March first week by stopping purchase of drugs by wholesalers and had informed drug manufacturers to stop supply of medicines in Kerala, as a ploy to pressurize the Government.

The ban on three firms was for not co-operating with the wholesaler's strike, senior AKCDA officials told Pharmabiz.com, and elaborated the association has discussed the issue with the officials of the companies, and the boycott was likely to be withdrawn soon.

"We have already discussed the issue with the concerned companies to discuss with the companies. It is likely that AKCDA will withdraw the boycott of the three companies shortly," said A.N.Mohan, President of AKCDA.

He also said some news reports on the boycott of the firms have caused lack of adequate life saving medicines like insulin injection and asthmatic drugs in the state were baseless, as various other companies market the same drugs in Kerala.

It is to be noted that the Association, which was planning to enforce a total strike by wholesalers and retailers since April 1, had withdrawn the proposed strike following successful discussions held with the Chief Minister A.K.Antony, senior cabinet ministers and officials on Monday, last week.

Talking about the Government decision to revoke the two-point taxation, Mohan said the Government would soon come out with a notification.

"During our meeting with the ministers, the concerned department officials were instructed to maintain status quo on the subject, which means the Government will not enforce the proposed two-point taxation system since 1st of April, 2004 and medicines will remain under the fourth schedule of the Sales Tax Act. A notification in this regard is likely to come soon from the Commercial Taxes department, which comes under the portfolio of Finance, and this need not have a cabinet approval" said Mohan.

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