Pharmaceutical industry and trade are once again at loggerheads. Distribution and sales of several pharma companies are getting disrupted across the country due to serious differences between pharma industry associations and various state district constituents of AIOCD (All India Organisation of Chemists & Druggists).

Friction between the industry associations and AIOCD has come to the fore mainly on account of non implementation of several provisions of MOU initialed by AIOCD on the one side and Organisation of Pharmaceutical Producers of India (OPPI) and Indian Drug Manufacturers' Association (IDMA) on the other side last year.

According to industry sources, although AIOCD office bearers agreed to all provisions of MOU last year many in the managing committee of the apex body are now demanding drastic revisions of key provisions in MOU before it is finally signed.

A senior member of IDMA said, "The main problem with AIOCD is that it is no more a disciplined body and its various constituents in the state and district levels are flouting agreed provisions of MOU. Sprouting of parallel trade organizations other than AIOCD constituents in certain states like Karnataka, Tamil Nadu, Andhra Pradesh and Uttranchal is further complicating any move to bring a settlement to the issues between the industry and trade."

One of the main areas of dispute between pharma associations and trade is the arbitrary product information services (PIS) charges now being demanded by some state associations. As per MOU, it was agreed that pharma companies would pay a PIS charge of Rs 2,000 for a new product introduction in A class states and a PIS charge of Rs 500 in B class states.

Various state and district level associations are now demanding PIS charges ranging from Rs 2,500 to Rs 5,000 from pharma companies. This is not acceptable to pharma associations, an industry source said. After paying PIS charges, the PIS bulletins are being circulated just in four states in the country by the state associations.

A second area of dispute is with regard to appointment of additional stockists. Pharma companies are required to take "no objection" from state or district associations if they have to appoint more than two stockists in any particular area. The local associations in case of any fresh appointment are demanding donations. This is another new demand the trade is thrusting upon pharma companies.

Various state trade bodies are insisting on replacement of cut strips by pharma companies, as many retail chemists operating from small towns are financially weak. This is not an acceptable demand for all products, industry sources said Yet another demand of the trade that payments for new products will be made only after they were sold is not acceptable, sources pointed out.

J S Shinde, general secretary, AIOCD said that another round of talks with the industry associations will be called soon but the MOU will be signed only after incorporating the desired changes in certain wordings in a month. He said that new demands are rational as far as the trade community is concerned. "For small traders, stocking a number of new products regularly introduced by the companies is an uncertain investment. So our demand to make at least the first batch of the new products on consignment basis is quite reasonable and the industry has to agree with it," he said.

Shinde also claimed that most of the states are publishing and circulating the PIS bulletin despite the increased cost and other unexpected expenditures. "However, once the MOU is signed with all the reasonable clauses and provisions, we are confident that the same will be implemented in toto," he added.