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DNA IMPACT: RSS body objects to discounts by e-pharmacies

It states that e-pharmacists cannot be permitted to offer huge concessions as such distortion in prices undercuts smaller players in the field

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RSS-affiliate Swadeshi Jagran Manch (SJM) has waded into the debate over online sale of drugs with strong objections to the massive discounts offered by e-pharmacies. It states that e-pharmacists cannot be permitted to offer huge concessions as such distortion in prices undercuts smaller players in the field.

The Rashtriya Swayamsevak Sangh's politico-cultural organisation, which promotes national self-reliance, has also taken exception to the inventory-holding model of digital druggists, who also warehouse the stock in big bulks like their brick-and-mortar counterparts do.

SJM said it feared that medication might be dispensed online without prescription, in breach of existing regulations.

The body's national co-convener, Ashwani Mahajan, said they recently opposed the Centre's draft policy to govern e-commerce and argued that small vendors need to be protected from Big Pharma. "In case of online pharmacies too, high margins and huge discounts will impact offline pharmacies," he said.

As far as the model of online pharmacies is concerned, Mahajan said that SJM has opposed foreign direct investment (FDI) in inventory-based e-businesses. "As per the commerce ministry's Department of Industrial Policy and Promotion (DIPP), it is not allowed," he said. "Any relaxation in the norms would go against small shopkeepers, booksellers, medical shops and other small retailers including e-commerce start-ups. In case of online pharmacies too, inventory holding model will tilt the market in favour of big players getting foreign capital," he said.

SJM would call upon the government to reconsider this model for online pharmacies. "We will take up these issues with law enforcement agencies, including the Drug Controller General of India (DCGI), and seek amendments to the online pharmacy policy," he said.

The organisation's protests come close on the heels of objections raised by the Maharashtra Registered Pharmacists Association and the All India Chemists and Druggists Association against group and indirect discounts given by online players.

The two top bodies in pharmaceutical retail had suggested to the Union Ministry of Health and Family Welfare and the DCGI that a cap on these excessive discounts be included in the draft rules concerning e-tailing of drugs.

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