The Bangalore District Chemists & Druggists Association (BDC&DA) has demanded to the government to reinstate the 20 per cent margins to the retailers and 10 per cent to the wholesalers inclusive of the excise and value added tax (VAT). The association is annoyed over the fact that there are anomalies in the DPCO 2013 which is marring the retail and wholesale margin of the 348 drugs coming under the National List of Essential Medicines (NLEM).

In this regard, the association had discussions with the officials of the department of pharmaceuticals (DoP), in which it pointed out the shortcomings in the DPCO 2013 which is adversely affecting the retailers and the wholesalers. Following the meeting with the concerned officials of the DoP, BDC&DA is now confident that issues will be looked into before the month end.

There is need for deletion, addition and substitution of words which need to be incorporated. We have expressed our displeasure on the trade margins to the retailer without considering the wholesaler as defined in DPCO 2013. Therefore there is need to issue a fresh and revised DPCO 2013 in the interest of the pharma trade and the general public, V Hari Krishnan, president, BDC&DA, told Pharmabiz.

As per the DPCO, the ceiling prices fixed are based on market based prices and now we request the drug manufacturers to provide us the required margins, he added.

Now manufacturers need to maintain price lower than the ceiling price fixed and notified in DPCO 2013. They need to provide every wholesaler and retailer a copy of the revised price list for the products on sale with Maximum Retail Price (MRP), calculating the margin of 20 per cent to retailer and 10 per cent to wholesaler inclusive of excise and VAT. This is because DPCO 2013 defines a brand that identifies one seller drug as distinct from those of other sellers, said Krishnan.

Now it has been decided to support and service the brand of manufacturers who provide the margins required by us. BDC&DA has now called the wholesalers to invest and service products which provide margins as products are marketed by the brand and not on formulations. The prices are fixed on market based price as per DPCO 22013.

“Wholesalers now need to inform the revised reduced margins of any products and to invest on such drugs,” stated Krishnan who added that it would cause hardships to the trade partners.