Soliciting more assistance and support from the government to prop up the suffering small and medium scale pharma manufacturing companies in Tamil Nadu, the Consortium of Indian Pharmaceutical Manufacturers and Marketers Association (CIPMMA) will pass a resolution in its 8th annual general body meeting (AGM) demanding the state government to develop an excise-free zone (EFZ) area for pharma companies in the state.

The 8th AGM of the association is scheduled for May 2 and 3 in Pondicherry and a participation of more than 400 pharma marketers and manufacturers from Tamil Nadu and nearby states are expected.

The association is now mobilising the support of more than 1500 pharma marketers and over 500 manufacturers operating in various parts of Tamil Nadu to sign a memorandum in this regard to be submitted to the state government, central government and to the Department of Pharmaceuticals (DoP), said A Joseph Martin, general secretary of CIPMMA.

Currently, many of the manufacturing companies and most of the marketers from Tamil Nadu are accessing benefits of the excise free zones in Himachal Pradesh and Uttarakhand to manufacture their medicinal products. However, the transportation charges, month long delay in moving the formulations from Himachal to south India in addition to the expenses incurred for to and fro travels put them into difficulties with huge financial burden. This situation does not help them to reduce the prices even one per cent of the MRP.

Martin says that if the government sets up an EFZ for pharmaceuticals, it will help bring down the prices of the essential medicines and the people can benefit out of it. Most of the manufacturers and marketers of tablets and capsules enter into contract with manufacturing companies in HP or manufacture the medicines in their own plants erected there. According to him, the transportation charges, travel expenses, accommodation charges and other miscellaneous expenses incurred during the contract period amount to a big sum which can be left behind for the benefit of the people by selling medicines at cheaper rates. For this, the government should come forward and help the pharma industry. Though the manufacturers going to Himachal Pradesh are getting a few excise duty benefits, their distress is much bigger, he added.

In the AGM, CIPMMA will reiterate their most significant demand that the pharma marketers need separate licences for marketing. Currently, they are operating on wholesale licences. The marketers are entirely different from distributors as they market their own products. The manufacture and the chain of supply of their products are under their own control, and they do not market other companies’ products. The association wants the state government to take up their demand with the central health ministry for policy changes in issuing separate licences for marketers. It has sought the help of the drugs control administration to support their demand.

The association is also preparing a resolution to demand the union government to bring the raw materials required for the NLEM products also under Drugs Price Control Order (DPCO).