Further to the petition filed by the Indian Drug Manufacturers Association (IDMA) to the Union health ministry urging it to reconsider the hike in the product registration and manufacturing licences of pharmaceutical products, the Alliance of Pharmaceutical Traders (APT) Kerala, an association of pharma wholesalers, has approached the ministry wanting it to withdraw the tenfold increase in the licence fee for drug sales.

Saying that the decision of the government is an unjust act towards the chemists fraternity in the country, APT Kerala wrote to the under secretary of the Union health ministry that the traders are not getting any extra service as reciprocation from the ministry from the fee hike. The traders said if the government is going ahead with the draft rule, it will definitely ruin the drug business of the poor retail chemists and most of the rural pharmacies will have to close down their shops for ever.

Talking to Pharmabiz, APT Kerala president C P Kunhi Moidoo, who signed the letter, said that all over the country, the retailers are facing several problems today in maintaining and running the business owing to unhealthy competitions. Most of the pharmacies are operated as self employed firms and majority of them are working in the outskirts of the city or in rural areas. The average sale of a medical shop per day is less than Rs.3,000 now-a-days. Expense for room rent, electricity charges, labour charges and other incidental expenses come around 70 to 80 per cent of the total turnover. Since the business is the only source for their livelihood, they are running it with great difficulty.

In this respect, APT has requested the DCGI and the Union health ministry to reduce the quantum of the amount and introduce a comparative hike rather increasing tenfold of the present rate.

The DCGI last month had issued the draft order for the fee hike for pharmacies and for manufacturing companies for registration of domestically manufactured new products, registration for importing medicines (licence) and also for registering such imported pharmaceutical products. Against this huge increase in fees, associations of pharmacies have decided to conduct a Parliament March in New Delhi on February 24.

The licence fee for pharmacies has been increased to tenfold of the existing amount. If the new draft becomes the Rule, a medical shop owner has to pay Rs.30,000 in place of the existing Rs.3,000.

The wholesalers association further wanted the ministry to introduce a single licensing system for both wholesalers and retailers. Currently, for wholesalers, the licence is issued in Form 20 B and 21B, and for retailers, in Form 20 and 21 permitting to deal in Schedule C and C (1) and other than those specified in Schedule C and C (1). For the convenience of the traders community it may be consolidated to a single licence of 20B and 20 respectively for wholesalers and retailers.