Small scale pharmaceutical sector has urged the government to take note of a number of elements while fixing the prices for the unbranded medicines to be sold through the generic stores, being proposed in each district of the country. The SSI also expressed their inability to extend credit facility for the scheme.

The SME Pharma Industries Confederation (SPIC), while supporting the proposal, urged the government to calculate MRP of drugs on a number of norms like raw material price and logistics charges. Raw material price should be fixed on average price as given in the chemical weekly every six months, conversion charges should be as per NPPA norms and fixing manufacturers' margin should be done by the government, the association said.

"Logistics charges should be fixed by the government. But monitoring expenses on services rendered on approval of SME units and carrying out quality audits should be taken note of," SPIC representation on the matter said. It also suggested that any pharmacist from a recognized institution or any organization receiving funds from MPLD scheme be given chance to run the outlets. Any manufacturer who fails to supply medicines for more than three orders should be disqualified, it said.

Federation of Pharma Entrepreneurs (FOPE), in a representation to the government on the scheme, said the small scale units were not in a position to extend credit facility. "It will be worthwhile that one centre in each State should be established, preferably in the capital, where suppliers will give goods and obtain a receipt from the central stores. On the basis of this, 90 per cent of payment will be made to the supplier upfront by the nodal agency and 10 per cent will be paid after a certificate is issued by the receiving agency that the material has been in perfect order," FOPE said.

On the qualification of manufacturer to supply drugs, the association said Schedule M for all sections should be the minimum technical qualification. "For financial qualification, instead of fixing a turnover clause, it is better to fix business volume as per the turnover of the company. If a company is having Rs 2 crore turnover, it can supply drugs worth Rs 2 crore. It will help the small scale sector to a very great extent," the representation said.