The small scale pharma units in Kerala are up in arms against the indifferent attitude of the State Medical Services Corporation in implementing the 10 per cent price preference offered by the Kerala government as an incentive package to bolster the struggling small-scale industrial sector in the state. Agitated over the corporation's approach, the Kerala Pharmaceutical Manufacturers Association (KPMA) will soon approach the state health ministry to press upon the corporation to get the scheme implemented.

As per the notification of the government, the corporation has to give orders to the small-scale companies even if they are putting a price, which is 10 percent higher than other tender price index given by major companies. According to sources, the state financial department has issued notification on price preference to SSIs in August last year. In Kerala most of the drug manufacturing companies come under SSI.

The annual general meeting of KPMA, which held on January 28, decided to send a representation to the Ministry to apprise the grievances of the pharma units, majority of which are on the verge of closure, said Dr AMD Namboothiri, president of the Association. In the state, 35 companies are manufacturing allopathic medicines.

According to Association members, though the government notification contains comprehensive package of incentives for promoting all the sick small-scale units including those from pharma industry, the lukewarm attitude of the Medical Corporation towards pharma industry has weakened the sector enormously.

"Earlier we were getting 15 percent price preference, but the previous UDF government had brought down it to 5 per cent. However, as part of the new industrial policy of the present government, it has decided to give 10 per cent price preference to all SSI units. But the Medical Corporation which purchases essential drugs from various manufacturers, does not provide the notified incentive of 10 per cent price preference to the pharma units, though it is applicable to Pharma industry also," said the president of KPMA.

When contacted Dr Dinesh Arora, director of Kerala Medical Services Corporation Ltd, said the Corporation has not yet received any order from the government to provide such price preference. Further he said the price preferences are decided by the board of directors of the Corporation and they will look into the matter.

The drug makers in the state complained that the Corporation had made some futile attempts to avoid the small-scale pharma units from availing this benefit claiming that the Corporation is not included in the list of institutions supposed to give incentives to industrial units. But the Principal Finance Secretary on January 23 issued a second notification clarifying that the state Medical Services Corporation is also included in the list. Hence the Corporation has to consider all the Small Scale Pharma Units for price preference while dealing with the tenders, members of KPMA said.