The All India Organisation of Chemists and Druggists (AIOCD) has asked the South Zone chemists and druggists from the states of Andhra Pradesh, Tamil Nadu, Pondicherry and Karnataka to withdraw the boycott of Glaxo SmithKline Pharmaceutical (GSK) products.

The AIOCD, in a communication to the South Zone traders, has informed that the issue of GSK's unfair trade practices had been resolved for the present and there was no need to reject their products for sale. In view of this development, AIOCD suggested that non co-operation by the Federation of Andhra Drugs Trade (FEDTAP) and AIOCD South Zone should be withdrawn till the issue is finally decided by the Trade Affairs Committee (TAC) which will meet in December first week at Thrissur in Kerala.

A meeting with a senior official of GSK along with members of AIOCD and FEDTAP have now solved issues regarding the schemes and bonus offers. Now GSK has decided to operate the schemes in multiples of the schemes offered to retailers as per the requirement of stockists with effect from December 1, 2004, stated V Hari Krishnan, president, Bangalore District Druggists and Chemists.

The Association has also ensured that there would be no spot or special schemes. If it is found that the company had given any special scheme to any particular stockist, the company would have to compensate all the stockists in that district.

Further GSK has agreed to follow all the points of the memorandum of understanding (MOU) on January 7, 2004 signed with FEDTAP in all the South zone states. It has agreed to settle the claims of all the expiry date, cut and loose strips having batch Number and Expiry date. This apart the company has agreed to settle all the pending claims which will be sent through the district/state within 15 days with a copy marked to AIOCD.

The South Zone has given the company 45 days till December 31, 2004 to resolve the issue of CST (central sales tax) suffered or vendors tax. They have asked the company to agree to absorb those taxes after January 1, 2005.

Regarding the interest rates on the delayed settlement of claims, which was denied by the company, will be brought to the notice of AIOCD for settling the same.

The decision on the increase of the margins of the Betamethasone and vitamins along with the increase in the credit facility on new products launched would be decided by the AIOCD after discussions with the company.

Regarding Special rate and special schemes for drugs being supplied to nursing homes and private hospitals, the company agreed to stop such schemes till next TAC meet. However, this was not agreeable to the South zone and the same was differed till finalised by TAC which would be decided during a meeting at Thrissur.