The Nasik Division of Ayurveda Drug Manufacturers Association (NDADMA) have objected to the draft notification of the good manufacturing practices (GMP) rules for Ras-aushadhis on the grounds that the units will close down because of financial constraints. The association demanded a Common Facility Cluster Scheme (CFCS) during the 11th Plan to provide infrastructure for small scale units.

In order to increase the number of Cluster Centres, the Nasik Association stated that the maximum subsidy amount limit could be reduced to Rs 12 crore. The implementation of the same would definitely enable small units to accept the provisions of the proposed draft notification.

In a memorandum submitted to the Ayush Department, the Nasik association led by S G Pathak, president, stated that if the notification is made applicable to the ayurvedic sector, the industry which largely consist of small units would have no alternative but to exit from the business. The primary reason being that for Schedule T compliance, the units have already spent several lakhs of rupees by raising loans to modernize facilities. "The GMP Rules for Ras-aushadhis and Bhasma preparations would now prove to be the last blow for them leading to the end of their business," the Association pointed out.

The Association stated that to abide by the rules, units would require to make a minimum investment of Rs 50 lakh each. The small units are perpetually cash strapped for untoward upgrading of facility. It would be impossible for the units with an annual turnover below Rs 1crore to raise an additional loan. Not only that, financial institutions did not entertain such borrowings from the small sector because of their poor repayment capacity and the previous outstanding loans.

Further the NDADMA brought to the notice of the Union government that at least 80 per cent of the units did not have any idea about the draft notification and the Common Facility Cluster Scheme. Due to the financial year ending in March 2007, the small units are not able to focus on the notification. Therefore the department should extend time limit up to April 30 2007 to submit views on the proposed Draft Notification and the Common Facility Cluster Scheme.

In order to provide details and get the views of small units, region-wise meetings should coordinated through the regional Joint Commissioner of Drug Administrations of each state. The Common Facility Cluster Scheme could safeguard the interest of the large, medium and small units.

Currently, about 1,000 small units in the country are engaged in the manufacture of Ras-aushadhis & Bhasmas. The average annual quantity of these preparations manufactured by small units is about 5 lakh kilograms valued at around about Rs 50 crore. "If they are compelled to stop the production of these preparations, there is a possibility of scarcity of many of such preparations and the remaining units complying with the provisions of the proposed rules may not be in a position to cater the increased needs of the market immediately, stated the NDADMA members

If most of the ASU Units are forced to stop production of Rasaushadhis & Bhasmas, the manufacture of the Ras-aushadhis and Bhasmas, will be centralized in the hands of few companies which shall give rise to monopoly business. This will pose as an indirect threat to the ayurveda sector.

NDADMA requested the department of Ayush to call for a meeting with the industry to prevent further problems affecting the sector because of the notification.