The Kerala government has reached an agreement with certain pharmaceutical manufacturing companies operating in various states in the country for the supply of medicines to the government procurement agencies on discounted rates.

As per the agreement, the companies will give a discount of 25 per cent on all essential drugs supplied by them to the government agencies, such as Kerala State Medicinal Supply Corporation and Consumerfed. These agencies will circulate the drugs to the government run Neethi Medical Stores, Maveli Medical Stores and those retail outlets run by Hospital Development Councils in the Taluk and District hospitals.

In this regard, the government on Thursday held discussion with representatives of 71 manufacturing companies who agreed to the government that their products would be supplied directly to Kerala State Medicinal Supply Corporation without the involvement of distributors or intermediaries.

Speaking to Pharmabiz over telephone, Kerala health minister Adoor Prakash said all types of medicines would be supplied to the stores at a lower rate and it is part of the government’s decision to control the prices of essential drugs. He said initially this project will be implemented through 75 government medical stores.

When asked if the distributors raised objection, the minister said strict actions would be taken if any trade body tried to object the government’s step. He said there will be a reduction of 40-50 per cent in prices of certain essential drugs when avoiding the commission to the stockists and to the doctors.

Meanwhile, All Kerala Chemists and Druggists Association (AKCDA) secretary Antony Tharian said his association welcomes the move of the government. But he added that AKCDA would demand to the manufacturing companies to supply the same drugs to their shops also on the same discounted rates so that its members could also sell the products as fixed by the government. He said his association is not against any welfare measure taken by the government for the benefit of the people.