MP pharma firms see bias in new drug policy

Small-scale drug manufacturers in MP may protest against the new drug policy, endorsed yesterday, because they say the new policy has been made to favour "middleman" or "representatives" of some "outside drug manufacturers."

The policy has been launched without discussing the amendments made in the policy with the small-scale representatives.

Madhya Pradesh has almost 250 small and medium drug-manufacturing units with a combined turnover of approximately Rs 1,000 crore.

These units have been raising concerns at allowing "middlemen" and "representatives" in all-India tenders, which are floated by the Madhya Pradesh Laghu Udyog Nigam (MPLUN), a government entity, and want the entity to abide by the MP Store Purchase Rules.

The prime concern of the small-scale drug manufacturer is that the state government does not follow store and purchase rules.

Although the state government's new drug policy promised proper supply and transparency in the purchase of drugs, medicines and medicinal materials and surgical materials by replicating Tamil Nadu model, the Madhya Pradesh small and medium enterprises manufacturers see some loopholes in it.

"A centralised system has been introduced to procure medicines and surgical equipments and Public Health and Family Welfare Department has been made the nodal department for purchase of medicines and other material instead of MP LUN," said the government statement.

A coordination committee would also be constituted under the chairmanship of the Principal Secretary, Public Health and Family Welfare. It will comprise officers of Medical Education, Gas Relief and other concerning departments.

In case other departments are willing to participate in the process their officers would also be included in the committee, said the statement. "This means the small scale units will have to undergo a typical and lengthy process of settling the issues.

Although the new policy allow only those manufacturers who follow 'Schedule M' process notified by central government through electronic tendering process which will take place in February month of each year, the state government has put a cap of 30% purchase from local drug manufacturers. A technical committee headed by director medical services will monitor the minimum price bidders.

"We do not know what will happen to the rest of the 70% purchase? The government will call all India tenders and in that case manufacturers of Baddi (Himachal Pradesh) industrial area will have an edge over us since they are tax-free units. We have demanded from the government to discuss with us, particularly store purchase rule No 14, 14 (a) and 14 (B) before launching the policy but it has been launched suddenly," said RA Sharma,

President of Madhya Pradesh Small Scale Drug Manufacturing Association adding, "I do not have details of the policy. But MP drug manufacturers are competent enough to feed to the extent of 80% of the state medical needs."

Ironically the state government has exempted the new Store and Purchase Drug Policy from MP Store Purchase Rule No 14, 14 (a) and 14 (b).

At present the drug manufacturers are not in a condition to speak on the issue since the details of the policy are not available to them. The MPLUN will be entrusted the task of purchasing the software from Tamil Nadu Medical Services Corporation Limited and will offer a fee for the consultancy services to the Corporation.

An industry source, on condition of anonymity said, "Only few top employees of MPLUN controlled the drug purchase, now the powers will be shifted to health department officials. The exemptions from the MP purchase rules will put the local drug manufacturers out of the process."

The state needs 234 drugs at district level hospitals, 197 at civil hospitals, 128 at community health centers, 72 at primary health centers, and 22 at sub-health centers MP small scale and medium drug manufacturing units get orders between Rs 10 crore and 15 crore.