The small scale pharmaceutical units, facing closure threat due to the MRP based excise regime, are planning a national bandh and voluntary reduction in drug prices by 10 to 13 per cent, as a last resort to impress upon the government to announce sops for the sector, it is learnt.

The Confederation of Indian Pharmaceutical Industries (CIPI), the apex organization of state level pharmaceutical manufacturers, is planning a nationwide closure of SSI units on April 25. CIPI leadership is now in the process of mobilizing support from the workers in the units and also from the drug traders led by AIOCD, who have assured a sympathetic stand and support for the planned agitations and representations to the government.

"We held discussions with the Gujarat and Maharashtra associations last week and they are for applying pressure on the government. We are also thinking of voluntarily reducing the drug prices by 10 to 13 per cent. We are in a desperate position and there are no indications from the government yielding to any of our demands. Their prime charge is that the SSIs are making huge profits. We are ready to cut prices, and they should come up with a decision to do away with this system. We are in the process of mobilizing opinion on this from various state level associations and their members," said T S Jaishankar, chairman, CIPI. The SSI leaders also calculate such a move could tilt the public support and sympathy in favour of the SSIs.

Meanwhile, the union finance minister P. Chidambaram is learnt to have conveyed to the SSIs not to nurture any hopes of further sops, when a team of CIPI and Tamil Nadu pharmaceutical manufacturers met the minister in Coimbatore, last week. He was adamant on his stand and ruled out any further sops, especially on the SSIs demand to increase the minimum excise limit from Rs 1 crore to Rs 3 crore, said sources.

The minister is also learnt to have conveyed the SSIs that the decision was taken after considering the profit margins enjoyed by the small-scale manufacturers and their grievances could be presented before a committee that looks into the issues related to the excise duty notification.

Ninety per cent of the SSIs, which were dependent on contract jobs from pharma majors, have turned jobless. The issue has also stalled the ongoing Schedule M implementation process, which has to be completed before June end, this year.