All India Organisation of Chemists and Druggists (AIOCD) insists  that the Union government would need to define the role of the wholesalers in the pharmacy trade and also provide clear cut guidelines for drug substitution. Following the omission of these in the Drug Price Control Order (DPCO) 2013, AIOCD is resolved to impel the government to deal with the same. There are also issues of no payment policy where the manufacturers do not have any time frame to withdraw the drugs labelled with old prices which should be at least within 45 days.

“The presence of a wholesaler who is an important link in the pharmacy trade chain is totally ignored in the DPCO 2013. There is no mention about wholesale margins although AIOCD has been pressing for 10 per cent margin. For the retail segment, a margin for 16 per cent is indicated as against the demand for 20 per cent. Going forward, we will need more clarity on this,” Suresh Gupta, general secretary, All India Organisation of Chemists and Druggists told Pharmabiz.

The government also needs to make a concerted effort to provide legal rights to the chemist and druggists to substitute the drugs. Currently, drug substitution is termed as a violation in the Drugs and Cosmetics Act, he added.

The DPCO 2013 and the National List of Essential Medicines (NLEM) have complicated the lives of chemists and druggists. The representatives of AIOCD are now bogged down by margins issue and control of drug prices for drugs in NLEM which are hardly prescribed by doctors, said Gupta who was in Bengaluru in connection with the Bangalore District Chemists and Druggists Association (BDCDA) 2015 convention.

In the current scenario with high rents for chemist outlets and rising power costs, it is not viable for the pharmacy trade to survive with low margins. It would be even difficult to subsist in the wake of Jan Aushadhi stores and online pharmacy, he said.

“Several efforts to convince the government proved in vain. Now with the ensuing Drugs Consultative Committee meeting scheduled for July 24, 2015, we have requested Dr. GN Singh, Drugs Controller General of India to permit AIOCD to present its views on online pharmacy. Of the 8 lakh chemists in the trade, 5 lakh constitute retailers and there are several thousands engaged in online pharmacy. If the government does not address our issues, it would result in closure of outlets,” he said.

All that the government needs to do is to permit the 8 lakh chemists & druggists to sell generic drugs at the price permitted in Jan Aushadhi outlets which would benefit patients of all economic backgrounds. It will also create a uniform pricing environment, pointed out Gupta.