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Pharma cos stop supplies to Manipur as militants seek ransom, traders raise alarm
Gireesh Babu, Mumbai | Friday, March 13, 2009, 08:00 Hrs  [IST]

The pharmaceutical traders in the north eastern state of Manipur has raised alarm about serious dearth of life saving medicines as many of the major drug manufacturers showed reluctance to transport their products to the state by paying heavy extortion charges to the local militant outfits.

The pharma companies has informed the traders that the transportation charges for life saving drugs to the state amounts up to Rs 7 per kg due to extortion by militant outfits at various points in NH 39 and 52, even as the normal transportation charges to elsewhere in the country is a mere Rs 2.50 per kg.

For the pharma companies, the revenue from Manipur is small as compared to income from other states accounting around Rs 1 crore per month, according to some trade sources. The heavy extortion rate has even reduced the business margin, which made the companies to pull out their products from the Manipur market.

Following the immense pressure exerted by the local traders' body, Manipur Chemists and Druggists Association (MCDA), the companies have agreed to continue supply of medicines as usual for the time being, informed the association leaders.

"Though the supply is normal at present, we fear that the situation may worsen in the next two to three months. Many of the major manufacturers conveyed their plan to stop supplies if the transportation is going to claim more on their supply cost," said Dr R K Ratan Kumar Singh, secretary, MCDA.

He said that the major dearth will be on liquid items including IV fluids, which are considered as life saving medicines. The major companies which supply drugs to Manipur include GlaxoSmithKline, Daiichi Ranbaxy, Biological Evans and Piramal Healthcare.
The traders in the state have gone for a massive strike by shutting down the shops two years back, when the militant outfits threatened and attacked the chemist shops seeking extortion. Through a discussion between the state government and the outfits, a settlement was reached but it lasted for a sort time.

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