The drug traders in South India under the banner of All India Organization of Chemists and Druggists (AIOCD) has decided to continue boycotting the products of pharma major GlaxoSmithKline Pharmaceuticals (GSK), allegedly against the company's unfair trade practices.

Top-level sources with AIOCD South Zone told Pharmabiz that the zonal executive committee meeting held on Saturday last week in Coimbatore decided to continue the boycott. The meeting also decided to discuss the issue hereafter only at the meeting of AIOCD national executive to be held on December 9 and 10 in Mumbai, and to decide on future course of action.

Reacting to a Pharmabiz report on AIOCD's demand to withdraw the strike and the issue was settled earlier, the sources said AIOCD national executive's suggestion was considered before launching the boycott on November 18, and the AIOCD's top brass was informed of starting the boycott.

"GSK officials so far have not discussed anything with us, may be with AIOCD national executive which we are not aware of. Our charter of demands is yet to be resolved by the company. This includes the margin issue, payment clearance and most importantly, the issue of direct hospital supplies," said AM Mohan, convener, South Zone, AIOCD.

While all other companies are offering a margin of 8 per cent to the stockists, GSK is adamant to offer only six per cent. While other companies clear their payments within seven days locally and 21 days for outstation traders, the company has been delaying the payments for a longer period to the south traders.

Similarly, the company has been supplying to hospitals directly, and is totally ignoring even AIOCD approved stockists. If the company was going to dictate its own rules and terms for selling the medicines they manufacture violating the trade pacts and ethics, it could create wrong precedence, said the sources.

Reacting to the comments of V Hari Krishnan, president, Bangalore District Druggists and Chemists, that a meeting with a senior official of GSK along with members of AIOCD and FEDTAP has now solved issues regarding the schemes and bonus offers, they said, it should be viewed only as that individuals' comment, and not that of AIOCD.

"As per our records, at present the Bangalore District Druggists and Chemists is under suspension from AIOCD and is not a constituent body of AIOCD. What they have said has nothing to do with AIOCD and our actions," informed Mohan.