The Maharashtra Food and Drugs Administration (FDA) Commissioner Mahesh Zagade has lashed out at All India Organization of Chemists and Druggists (AIOCD) for hiding facts and figures about the recent order of Competition Commission of India (CCI) from the pharmacists, manufacturers, wholesalers and stockists. The CCI order mandates that patients health should not be endangered by curtailing the supply of 348 essential medicines.

Zagade has also appealed to the Pharmacists not to resort to unfair practices thus affecting the consistent supply of medicines to healthcare institutions. This he emphasized based on his meeting with the manufacturers, who have been taken on board by the FDA in the wake of short supply of medicines due to cartelisation.

According to the CCI order, there is no need to obtain NOC from AIOCD for the appointment of stockists and the pharmaceutical companies, stockists, wholesalers are at liberty to give discount to the customers. Besides, it will not be mandatory to give Product Information Service (PIS) charges and PIS services could be availed by manufacturers/ pharmaceutical firms on voluntary basis. The order also emphasizes that there should be no boycott of pharmaceutical companies.

"Unfair practice of not supplying the medicines by a handful of drug dealers should not be taken for granted as it is an offense under the Drug and Cosmetics (D&C) Act and DPCO 1995. These laws not only determine pricing but also mandate uninterrupted supply of medicines,” Zagade said.

He further said, "Unlike the business of garments and automobiles, drug trade is a business of life saving medicines to the patients and hence the manufacturing to retail pharma business cannot be allowed to be controlled by a handful of individuals."

Considering the fact that more than 80 per cent of pharma business is owned by qualified pharmacists, Zagade said that the business and supply cannot be controlled by the remaining 20 per cent people who run their shops without a pharmacist and hence endanger patient life. The business has seen the cartelization of medicine trade over a period of 30 years, the recent fallout of which is that manufacturers are under a fear psychosis and are not able to supply medicines.

He reiterated the fact that there is sufficient stock of medicines and anyone trying to sabotage the business will be penalized under the Essential Commodities (EC) Act and Essential Supplies and Maintenance Act (ESMA).

Speaking on recent arguments raised by the some pharmacists on the non-profitability of the business citing the new price policy, Zagade explained that pharma trade ensures 16 per cent profit to the chemists which no other business mandates under the law of the land.

The FDA also claimed it has not been informed about any en masse surrendering of licenses by chemists and wholesalers. The PWA has submitted a memorandum to this effect to the state government, threatening to surrender their licenses by July 15.

Zagade said if the chemists want to surrender their licenses, the FDA will accept them. "It will mean they are not fit to abide by the law and unable to operate legally," he added.