Even as the Chennai Chemists Welfare Committee (CCWC) is revolting against the Consortium of Indian Pharmaceutical Manufacturers & Marketers Association (CIPMMA) demanding hike in profit margin, sources from CIPMMA has informed Pharmabiz that they will expeditiously try to solve the issue in a positive manner without getting the problem more aggressive.

Unlike other states, in Tamil Nadu medicines to stockists/wholesalers/distributors are supplied mostly by the marketing companies. CIPMMA is the association of the pharma marketers.

“Currently all our members are giving 10 % margin to the distributors according to our earlier decision. In the case of retailers, we are following the DPCO norm of 16%. But, in addition to this 16%, all our members are giving bonus offers to the retailers as business promotional incentives. Both the distributors and retailers are our supporters and we will consider their issues positively,” said K Kannan, chairman of CIPMMA.

Responding to queries from Pharmabiz, he said margin issue has been made a special agenda in the AGM of CIPMMA on July 13 at Thiruvananthapuram. An unmistakable decision is expected to come out after the meeting and it will definitely satisfy the TN PDA and TNCDA members, he hoped.

“Ours is a democratic forum. Any decision has to be taken with the approval of the members. We are ready to review the margin rates, but it has to be decided in our members presence,” Kannan told Pharmabiz.

According to him, all the members of CIPMMA are worried over the way the retailers and distributors are asking for more discount. But any decision apropos margin money has to be taken unanimously by the members. CIPMMA’s policy matters are discussed and finalized in the zonal meetings of the organisation. It has six zones across the state and it comprises 2,000 marketers and 600 small scale manufacturers. Previously, the small scale pharmaceutical manufacturers in Tamil Nadu were united under an association called Pharmaceutical Manufacturers Association of Tamil Nadu (PMA), which is not active now with the emergence of CIPMMA.

Meanwhile, the decision of CIPMMA to review the margin amount has been welcomed by CCWC which has been revolting against CIPMMA for the last one year for more profit share. The state general secretary of the Tamil Nadu chemists and druggists association is alleged to have been indifferent about the problems of 35,000 drug retailers in the state. T Selvakumar of CCWC is likely to be invited to the AGM of CIPMMA, it is informed.