Govt's Jan Aushadi programme to exceed 2021-22 targets, shows data

The pace is slower for including more medicines in the product basket; sales have grown at a CAGR of 51.9% in the last five years

On February 28, the government announced that it would cel­eb­rate the fourth Jan Aushadi Diwas from March 1 to March 7. While the government repurposed the Jan Aushadi programme in September 2015 — the scheme has been operational since 2008 — this year would also mark the seventh year of the plan.

A Business Standard analysis shows that the government is well on the path to achieving its targets, even though the pace has slowed down in the last few months.

The government was averaging 130 stores a month in the first six months of fiscal 2021-22, but over the last five months (until March), the opening of centres has reduced to 58 per month.

However, even at this pace, the government has exceeded its target for the year and has been doing so over the past two years. Data shows that while the government was expected to set up 8,300 centres until March 1, it had already set up 8,689 centres. Last year, against a target of 7,300, the government had set up 7,557 centres.

While the government has been meeting its targets regarding the opening of Jan Aushadi Kendras, the pace of including more medicines in its product basket has been slower.

Although the product basket increased to 1,451 medicines and 240 surgical items from 600 medicines and 150 surgical items in 2017-18, the target for 2021-22 was 1,600 medicines and 240 surgical articles.

The government plans to increase the list to 2,000 medicines and 300 surgical items, with 10,500 centres across all districts by 2024-25.

The sales turnover, data indicates, has increased seven times during this period. In 2017-18, the total value of sales was Rs 141 crore; this year, sales value has already exceeded Rs 751.42 crore — a compounded annual growth rate of 51.93 per cent. The government highlights that savings have gone up from Rs 2,500 crore in 2019-20 to Rs 4,500 crore in 2021-22.

Data indicates that 900 medicines under the government scheme were cheaper by over 50 per cent, of which 371 were more affordable by 80-90 per cent, compared to the price of a branded medicine.

The number of people accessing free medicines may have also increased during this period. According to the last available NSSO data, the number of people accessing free medicines had risen from 12 per cent in 2014 to 13.8 per cent in 2018 in rural areas and from 12.3 per cent to 14.4 per cent in urban areas.