FDA serves show-cause notices on 13 wholesalers

Fifteen days after wholesale chemists started their ‘no purchase’ strike, protesting against the alleged harassment by Food and Drug Administration (FDA), 13 wholesalers were served show-cause notices by the government agency. 

The chemists association members are protesting against the new drug price control order, which has slashed the prices of 348 essential medicines by 30% to 60% of its current price and FDA’s crackdown on chemists operating without full time pharmacists.

FDA has accused the wholesale chemists of creating an artificial shortage of drugs in the market by refusing to purchase or supply drugs. It has warned the chemists of action under Prevention of Black Marketing and Maintenance of Supply of Essential Commodities Act, Essential Services Maintenance Act, Drugs and Cosmetic Act and Drugs Pricing Control Order 2013.

“We have given them a period of two days to reply to our notice. After the period elapses, we will take action as per legal advice,” said Ramchandra Bhilare, assistant commissioner (drugs), FDA Pune.

Meanwhile, chemists associations, which have threatened to surrender 55,000 wholesale-retail chemist licenses by July 15 if the FDA doesn’t relent its stance, rubbished the notices.

“They have no right to force us to do business if we don’t find it feasible. There is no such law,” said Anil Navander, secretary, Maharashtra State Chemists and Druggists Association (MSCDA).

Meanwhile, local chemists associations have threatened to return all the remaining stock to drug companies if FDA takes action against a single member.

“Even if they take action against a single member, we will return all the stock to the drug companies. We will not watch in silence while our members are harassed,” said Vijay Changediya, secretary, Chemists Association of Pune.

Retailers devise strategies to procure drugs in shortage

Even as wholesale chemists have been served show cause notices by the Food & Drugs Administration (FDA) officials after they stopped purchase of drugs, retailers say procuring drugs is now turning out to be difficult.

Since June 3, wholesale chemists have stopped purchase of drugs. For the first 15 days, while drugs were abundant and there was no problem in supply, the shortage of drugs and difficulty in procuring them has already hit retail chemists.

Rajendra Jain, owner of Camp’s Vijay Medicals said that so far the shortage of drugs is not acute. “We decided that in case there arises a situation that we need to purchase drugs directly from the company depot, then a group of retailers will get together to place the orders. Since individual retailers may not have the capacity to purchase drugs in bulk since we don’t have the sale or financial resources, we decided that we would get together if need be.”

Another retail chemist owner said he has contacted a few business associates in neighbouring states and would purchase it from there if need arises. “I cannot order in bulk so whatever order I want to place, will do so through friends and relatives in same business in other states. At the most my profit margin would be reduced, but I would be able to service my loyal customers properly,” he said.