The Hindu Business Line : Govt wary of allowing grocery shops to hawk OTC drugs

THE Health Ministry is concerned about permitting neighbourhood kirana stores to stock over-the-counter (OTC) drugs, even as multinational pharmaceutical companies are pushing for relaxation of norms. The move has been under consideration for over a year now.

While the industry has been referring to the US market where the per capita consumption of OTC products is $59.10 and making a case for India, the Government feels that the profile of the Indian consumer differs from his American counterpart. "The awareness and education level of the Indian consumer is very low. How many people can actually read the information brochure?" asked an official.

Added to this is the regulatory issue. "The Government already finds it difficult to monitor the existing pharma retail and distribution chains. It would become tougher if grocery shops too are allowed to sell OTC drugs," he said.

The Ministry is also under pressure from the various pharma retailers and distributors' associations, which are against any move to permit others to sell OTC products. "The retailers feel that they would be deprived of the income from these products," the official added.

Under the existing Schedule K norms of the Drugs and Cosmetics Rules, the sale of household remedies (except prescription drugs) requires a licence for selling in villages having a population of over 1,000. Mr Bharat Patel, Chairman, OTC committee, Organisation of Pharmaceutical Producers of India (OPPI) told Business Line, "We want the Government to change the `1,000' population norm as this limits the easy availability of drugs to a vast majority of people."

Meanwhile, the OPPI has asked the Government to classify vitamins and calcium preparations, antiseptic lotions, antiseptics, natural laxatives, topical anti-bacterial and anti-fungal preparations, and topical preparations for relief from pain and inflammation as household remedies. "Internationally, specific brands are moved from the prescription list to the OTC segment, while in India this is done category-wise. The drug regulator would hence have to examine the entire category before permitting such a shift," a Ministry official said.

The OTC market in India has been estimated at about Rs 4,200 crore and growing at 20 per cent. According to a study conducted by Nicholas Hall & Company, the total global OTC sales in 2004 is estimated at $68.1 billion, with the US leading the pack with sales of $17.4 billion.

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