The medicine marketing in Kerala is gradually becoming the monopoly of big manufacturing companies from north Indian states as small scale units in the state are not able to make a foothold in the field due to lack of support from government.

The government procurement agency, Kerala State Medical Services Corporation (KMSCL), whose operation has now come to a standstill, is not supporting the domestic manufacturing units as is done in neighbouring states, say industry sources. So, the state is not capable of manufacturing the required quantity of drugs for its use and the situation is benefited by manufacturers from north India.

Secondly, since internal feud is going on in the trade body, All Kerala Chemists & Druggists Association (AKCDA), the system of purchase and sale of drugs in Kerala is in big trouble now. Lack of proper coordination by government, unorganised status of the traders and the declining situation of small scale manufacturing companies has totally crippled the conventional system of marketing. Taking advantage of this unsteady condition, big players and MNCs are eying Kerala as their propitious market for their products.

Besides, the industry sources point out several other factors  that support a favourable market condition for outside manufacturers, especially from north India. According to them eighty percent of the total requirement is procured by KMSCL from pharma companies from north India. But now, the functioning of KMSCL has reached a standstill due to internal problems in the corporation and it has affected its business. Doctors in the government hospitals are helpless in directing the patients to the hospital pharmacies, so they advise the patients to get the medicines from outside.

Several civil and criminal cases are pending with the court against the officials of AKCDA, hence there is no unity among its office-bearers and their supporters. So, the situation in Kerala paves way for a monopolistic marketing condition for a few  pharma companies from other states. The traders’ organisation is not able to coordinate its members and resolve their problems.

This situation also helps the outside marketers to create a strong foothold in Kerala.