Financial Daily from THE HINDU group of publications
Tuesday, Jun 11, 2002

Port Info

Group Sites

Industry & Economy - Pharmaceuticals

Drug makers, trade to sort out matters

Aparna Krishnan

MUMBAI, June 10

DRUG-MAKERS and chemists have come together to sort out the long-standing disputes over price and trade margins.

The three main industry organisations, Indian Drug Manufacturers' Association (IDMA), the Organisation of Pharmaceutical Producers of India (OPPI) and the All-India Organisation of Chemists and Druggists (AIOCD) have come together to form a task force to tackle the various complaints on retail trade.

According to IDMA's newsletter, IDMA bulletin, the industry bodies had signed a memorandum of understanding (MoU) on industry-trade matters in August 30, 2001 but was put `in abeyance' pending further discussions by AIOCD. The trade body has since given its confirmation to the MoU and is expected to be fully implemented by all sides.

The coming to force of the MoU assumes significance due to a series of clashes in the past eight months, between the retail chemists and the pharmaceutical companies over the price issue. Recently, the AIOCD had threatened to boycott some products of Sun Pharmaceuticals Industries Ltd over discrepancy in trade margins. The MoU is expected to tackle sensitive trade matters such as declaration of maximum retail price (MRP) on drug packages, product information service, invoicing information, arbitrary actions and date-expired stocks and imported drugs.

The task force on the issue of declaration of MRP on drug packages has members from all the three associations and will pursue the matter jointly with the Government.

"It was clearly agreed that trade will not demand any margin on excise duty or local taxes if all-inclusive MRP system was put into effect and that the existing system of calculating trade margins on net price excluding excise duty and local taxes shall continue," the MoU states.

A significant breakthrough is the confirmation of AIOCD that there will be no further agitation or direct action with regard to all product information services (PIS) for new products, which would be cleared immediately.

Send this article to Friends by E-Mail

Stories in this Section
Hepatitis B vaccination for infants takes off

National games township coming up at Cyberabad
Drug makers, trade to sort out matters
NLC to set up plant in Rajasthan
Tanir Bavi says KPTCL owes it Rs 184 cr
States in South, West most affected by power shutdowns
Signature campaign by KSEB staff
Textile exports target tentatively set at $15 b
Ground water maps for six States ready
DD Metro to stay terrestrial channel
Zee Tele gets nod to uplink more channels
Ample Tech to offer course in film-making
Raw pearl, gems exempted from customs duty
Build petroleum reserves for 15 days: FICCI
VC investment biggest challenge: CII biotech survey
BPL steps out of race for SCI
Finance Ministry decision on EPF interest next week
Kerala Govt targets Rs 4,580 cr from savings schemes
Kerala: Rs 2.7 cr sanctioned for tribal housing
India-Chem 2002 in September -- Health summits with Latam, CIS nations planned
Priority for quality in exports stressed
Hyderabad Engagements
Peace fest focuses on Gujarat carnage
Bearings industry urged to bring value-addition to distribution
Karnataka Tourism launches travellers' handbook

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line