The interim budget presented by Kerala chief minister Oommen Chandy in the assembly on February 12 failed to address any of the pressing needs of the pharmaceutical manufacturing industry in the state.

Quite like in most previous years, it once again shows the neglect of the government towards the pharma sector and zero allocation has been made for the struggling pharma SSI units for their survival despite repeated requests were made to the government by the industry people.

Terming the interim budget as a ‘vision document for ayurveda industry’, K.P Purushothaman Namputhiri, president of Kerala Pharmaceutical Manufacturers Association (KPMA) said the allopathic pharma sector in Kerala continues to be a story of neglect from the policy makers.

“Something was expected to give a boost to the industry from the government, but it proved that allopathic medicine sector is not an area of concern for the government. The government wants to promote only ayurveda, the mainstream medicine sector, allopathy, has to reel under pressures for all time in the state, that is what the government wants,” he said.

He said allocations are there for upgrading and modernising the hospitals and their facilities, but there is nothing for the pharmaceutical industry to be happy with the budget. No tax incentive, no one-time grant, no soft-loans, no step for considering a pharma cluster or the pharma parks the industry is demanding for years. Whereas, the budget sets aside Rs.7. 5 crores for setting up ayurveda global village in Thiruvananthapuram. Government thinks that solutions to the health problems of people in Kerala can be found in ayurvedic method and the allopathic medicines do not play any role in the healthcare management system.

“The present way of making health policies will definitely affect the government’s plan for providing free medicines in all government hospitals as the small scale manufacturing units in the state will be forced to close down. Had the government supported the domestic industrial units, the state could have become self-sufficient in the domestic production for all kinds of medicines. The state has 1278 health institutions including primary health centres, community health centres and hospitals, besides 5403 sub centres. The number of government medical colleges is 11. Only 25 per cent of the total requirement of medicines in all these institutions is supplied by the local manufacturing companies, rest are imported from others states. If the government supports the local industrial units, they can supply the total requirement,” said Namputhiri.

He further said this neglecting attitude of the government will affect its plan for providing free medicines in all government hospitals because, very soon, the small scale manufacturing units will shortly close down. But proper support is given, the state can become self-sufficient in the domestic production of all kinds of medicines.

KPMA had earlier wanted the government to declare a revival package for the pharma industry by announcing the sector as a thrust area. The office-bearers of KPMA met the health minister several times and briefed him about the current situation of the SSI units and requested him to provide tax holiday, one time grant, soft loans, etc for the upgradation and modernisation of the existing units as well as the new ones. All the member units are complying with GMP standards as per revised Schedule M. Another demand to the government was ‘pharma parks’ with state-of-the-art facilities in Thrissur, Wayanadu and Idukki districts. Reacting to the budget, the former minister and polit bureau member of CPI (M), M.A. Baby MLA has condemned the government’s neglect towards the pharma units in Kerala and said the government should immediately reconsider its stand and sufficient financial aid should be given to the sector. The government should take measures to make the state self-sufficient in drugs production for the total requirement of its healthcare institutions, he told Pharmabiz.