Mumbai to face shortage of essential medicines as wholesalers stop purchasing fresh stocks

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Written By: Admin | Published : June 7, 2013 10:19 AM IST

The city of Mumbai is facing a shortage of essential medicines after thousands of drug wholesalers have stopped purchasing fresh stocks from manufacturers since the beginning of June. The wholesalers are opposing the new national pricing policy which they say will cut into their margins. The state FDA on the other hand believes it s a pressure tactic against its stringent implementation of laws.

On Thursday, the FDA wrote to nearly 4,000 wholesalers warning them against resorting to actions that will affect public health because if the stand-off continues hospitals and smaller stockists will find it difficult to provide drugs to their patients. The FDA officials said the wholesalers are trying to disrupt the supply chain and pressurise the government. FDA joint commissioner Kamlesh Shende said, Retailers usually have stocks for about a week to 10 days, while some wholesalers may have a month's inventory. But, if they continue with their protest, it may snowball into a big problem.

While this move won t affect private hospitals which buy medicines directly from companies it will affect public healthcare facilities. Shende added that the FDA wouldn t shy away from suspending or cancelling licences if there s a drug shortage in the market. They will have to evoke Section 3 of the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act 1980. The Pharmacists and Wholesalers Association (PWA) on the other hand believe they have little choice. They believe they re been targeted by the FDA first for not having licensed pharmacists at the chemist shops and now the new drug policy will cause loss of profit by almost 50%.

In the last year, the FDA has tried to break the stranglehold of big drug distributors who don t let small players procure medicines from manufacturers without their consent. The FDA has already filed six FIRs against pharma companies for refusing to supply medicines to small distributors.The National Pharmaceutical Pricing Policy will come in effect in the next two weeks and will reduce the price of several drugs by 20-25% and essential ones by 80%. Currently a total of 348 essential drugs will be regulated as opposed to 74 before.

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