The Indian Drug Manufacturers Association (IDMA) has expressed its concern on the recent government intervention to reduce the trade margin on pharmaceutical products. The Association, in a press release has stated that it strongly believes that the reduction in trade margins would badly affect the SSI Industry as they follow the trade route and not the ethical route to promote their products through doctors.

IDMA argues that, as the SSIs are more dependent on the trade to promote their products they need to offer high margins failing which it is difficult for the trade to promote the products.

The release added that it is only thanks to the generics that Pharmaceutical medicines have been able to penetrate in rural areas and hence been accessible to people living in remotest of rural areas.

"We also do not see how the reduction in margins would benefit the consumer, as reduction in trade margins would not automatically reduce the prices of medicines," said the Daara Patel, secretary general, IDMA.