In order to identify the burning problems encountered by the small scale pharmaceutical manufacturing units in Kerala and with a view to increase the involvement of the SSIs in the supply of medicines to KMSCL, the newly floated KMSCL Institute for Drug Studies (KIDS) plans to undertake novel projects with the participation of all the stakeholders in the industry.

As part of the initiative, it has conducted two workshops involving the pharmaceutical manufacturers to study their problems and suggest remedial measures. The report of the study, as a proposal, will be submitted to the government in next month. As an autonomous body under KMSCL, KIDS wants the industry to greatly involve in the supply of medicines to the Corporation, said KG Revikumar, director of KIDS.

The second workshop held in Kochi on April 10 analysed the problems that hamper the growth and working of the pharma SSI units and identified the reasons for the closure of many companies. It also analysed the financial and technical structure of the existing companies and discussed ways to how they could be strengthened.

Representatives from pharmaceutical manufacturing companies, drugs control department, directorate of medical education, KMSCL, pharmacy council, researchers of drug policies and doctors from government and private sectors have attended the workshops.

“They discussed the importance of strengthening the manufacturing sector in Kerala. They want to have a special economic zone (SEZ) for pharmaceutical industry in the state, and they need more space, tax concession, price preference, electricity waiver and financial support,” the director said.

According to some participants in the workshop, the focus of pharmaceutical SMEs of the state should not be restricted to allopathic medicine alone. They should diversify and offer their services to other systems of medicines like Ayurveda, Homoeopathy and veterinary medicines.

While speaking to Pharmabiz, P Purushothaman, president of Kerala pharmaceutical manufacturers association (KPMA) said the state government is not helping the pharma SSI s in the state. Even the 15 per cent price preference was reduced to 10 per cent. The tender conditions are very complicated and they seek unwanted documents along with tender application. The formalities should be made transparent and the present system is forcing the suppliers to withdraw from applying.

Further he said that a proposal was submitted for an exclusive cluster for allopathic pharma units. There is one cluster for Ayurveda already existing in the state.

Regarding his suggestions at the workshop, he said currently the time allowed for supply is very less, hence it is difficult to comply. Half the quantity has to be supplied within 60 days from date of receipt of the order/intend. Failure to comply with the condition leads to liquidated damages (LD). KMSCL is requested to modify Annual Purchase Order and allow a time span of six months. Currently the liquidated damages collected from defaulters are exorbitantly high. KMSCL may collect the same as per provisions of Kerala Government Stores Purchase Manual and MSME Act, Purushothaman wanted.