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Rs 15,000 cr worth fake and counterfeit drugs in market: Assocham
Our Bureau, New Delhi | Monday, February 11, 2008, 08:00 Hrs  [IST]

The fake and counterfeit drugs are widely disbursed to the extent of Rs 15,000 crore per annum, registering 20-25 per cent growth every year, according to a survey carried out by Associated Chambers of Commerce and Industry of India (Assocham).

Sale of fake and spurious drugs in the NCR region itself amounted to Rs 300 crore annually and it constituted up to 25 per cent of the total medicines sold in the region, extending severe impacts on the original drug manufacturers and treatment. Areas like Ghaziabad, Meerut, Noida, Faridabad, Gurgaon and Sonepat were the hubs for spurious drugs, the data in the survey said.

Lamenting on the lack of designated agencies to keep strict watch and take punitive action to penalize fake drugs manufacturers in the region, the chamber has suggested creation of NCR Drugs Protection Authority to monitor nefarious activities of fake and counterfeit drugs manufacturers and to begin the action.

Assocham secretary general D S Rawat pointed out that other pockets within the NCR in which counterfeit drugs sale is affected without any fear include Mohan Nagar, Dadri, Surajpur, Suburb of Faridabad, Gurgaon and Haryana. The key factors for the spread of fake drugs in NCR comprise the shortages of drug inspectors and proper lab facilities to check purity of drugs, storages of spurious drugs by the chemists, weaknesses in drug distribution system, plenty of uneducated workforces in NCR and lack of enforcement. These all reasons have given the liberty to fake drugs manufacturers and druggists to supply the spurious drugs in the region.

"Majority of such drugs is devoid of necessary ingredients estimates for which exceed even 40 per cent and therefore the government concern should activate drug inspectors to catch the guilties. The fake drugs makers not only damage the society but evade taxation such as excise, VAT and local levies and subject the concern governments to revenue losses which run into thousands of rupees,'' the survey said.

The concentration of fake drugs manufacturers can largely be found out in locations such as Bahadurgarh, Ghaziabad, Aligarh, Bhiwadi, Ballabhgarh, Sonepat, Hisar and Punjab. These factories are located close to the bordering areas to access bulk supplies in the NCR region without any fear of being caught. NCR has limited drugs inspectors to monitor over 3300 chemists and over 30 per cent chemists are based in small areas of NCR. ``In view of limited routine checking by drug inspectors, these chemists are storing large stocks of spurious and fake drugs and most of them are purchased by unskilled and rural areas patients. NCR has also very few laboratories in the regions with proper infrastructure to check the correct ingredients in drugs,'' it said.

"For traders manufacturing fake drugs, the profits margins are very high with no apparent risk. The fake drugs are available in the popular medicines like Crocin, Voveran, Betadine, injections of calcium and syrups like Cosavil. The fake drugs business are also turned into a massive racket and even the government run hospitals in NCR have been witnessed the availability of fake drugs to the extent of 10-15 per cent. It should also carry out a survey of drugs for their genuineness and quality. For this purpose, large sample survey need to be carried out in different parts, separately for Metro, small cities, towns and rural areas", said Rawat.

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