The Kerala drug control department, the only state drug control mechanism in the country to implement distance rule for allowing new medical shops for the last two years, totally scrapped this provision following an official directive by the State health minister to the drug controller.

The DC was also forced to scrap the existing provision related to minimum area required for setting up a medical shop.

As per an order issued in December 2002, the Kerala drug control department had decided not to allow any new retail outlets within a vicinity of at least 100 meters away from the existing chemist shops in the case of rural area and 50 meters in urban area. Further, the circular had mandated to have a minimum area of 15 sq.metres for retail outlets and 20 sq.metre space for wholesale outlets, instead of the 10 sq.metres provision prescribed in the Drugs & Cosmetics Act, 1940.

This was introduced with a view to regulate proliferation of medical outlets and unethical drug trade, and due to complaints from traders on unethical competition from nearby medical stores. The DC enforced these provisions as per the powers conferred on him as per Rules 64 (1) and (2) of the Drugs & Cosmetics Act, 1940.

Talking to Pharmabiz, Gopinathan, drugs controller, Kerala said both the provisions have been withdrawn as per a circular dated December 9, 2004. He confirmed the provisions were withdrawn to maintain status quo prior to December 2002, following 'suggestions' from the minister.

K K Ramachandran, who took charge as the health minister of Kerala about four months ago, felt many MLAs have been demanding to scrap these provisions for sometime as many people were complaining the clauses caused difficulties in approving new medical shops. The minister is also of the view that the restrictions will deny numerous jobless people in the state an opportunity to start medical shops for living.

It is also learnt the minister directed the DC to comply only with the rulebooks, and need not innovate new provisions on area stipulations.

It is interesting to note the drug traders in states like Tamil Nadu and Karnataka have been demanding their respective drug control mechanisms to bring in the same provisions introduced by the Kerala drug control department to regulate mushrooming of retails outlets.

Kerala is one among the largest drug consuming states in the country with an annual sales turnover of more than Rs.800 to Rs.900 crore, as per the traders.