Shuba’s father-in-law had carried only a limited stock of his asthma medicine when he travelled from Payyanur (Kerala) to Mumbai to spend time with his children. After all, the medicine could be bought at pharmacies anywhere in the country.
But that was not to be, as the family found out when he exhausted his stock. The medicine was not available with chemists in Mumbai, Payyanur or Chennai and Shuba had to call the doctor in Kerala to get an alternative to this asthma medicine.
Supplies of some medicines are falling short across the country, as companies are in the process of withdrawing stocks with the old prices and replacing them with new batches bearing the revised price. This exercise follows the Government’s new drug pricing policy that aims to make medicines more affordable.
But Sanjay, a Hyderabad-based chemist, anticipates medicine shortages. “The (Government) order mandates us to sell the drugs at a reduced price. The new packs with changed MRPs are yet to come, while the distributors may not be willing to push the stock (with old rates) on hand," he points out.
Interim relief
P. Elango, General-Secretary of Tamil Nadu Pharmaceutical Distributors Association (TNPDA), says the shortfall in the State pertains only to a few premium brands.
Some companies had gone to Court on the issue and were given some interim relief, provided they gave their list of revised medicine prices to the chemists. But G. Somaskandan, TNPDA General-Secretary (Chennai), says many manufacturers have failed to send the price lists along with the repackaged stocks.
NPPA chief C.P. Singh, however, said there were no reports of shortages from across the country. Officials with the Food and Drug Administration in Maharashtra and Gujarat point out that low-priced alternatives are available in the market, as only high-priced drugs listed as essential needed a revision.
Trade troubles
Trade margins are a concern, as the DPCO (Drug Price Control Order) 2013 reduces the margins for retailers and wholesalers, said J.S. Shinde, who heads the All India Chemists and Druggist Association. The earlier margins were 20 per cent to the retailer and 10 per cent to the wholesaler, which comes down to 16 per cent and eight per cent, respectively.
Retail representatives from different States are meeting in Mumbai on Wednesday to take stock of the situation, he said.
The Indian Drug Manufacturers’ Association, the Indian Pharmaceutical Alliance and the Organisation of Pharmaceutical Producers of India had written to drug controllers in Tamil Nadu, Gujarat, West Bengal and Karnataka, alerting them to prevent shortages.
Maharashtra and Kerala, the Associations said, had seen a similar situation but intervention by the authorities had blunted its impact, they added.
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