New central Bill adds to drug makers’ woes

Ruchika M Khanna

Tribune News Service

Chandigarh, October 22

The 200-odd small pharma units in Punjab foresee a bleak future ahead, if the Centre were to bring into force the new Drugs, Cosmetics and Medical Devices Bill. The proposed law aims at centralisation of licensing and other regulatory procedures.

Legislation Will hit small units

The small drug manufacturers do not have either the financial muscle or other resources to keep running to central agencies, or upgrading infrastructure each time a new licensing authority is created or rules changed. Labhnesh Jindal, Drug manufacturer

Soni: Restrict sale of habit-forming drugs

• Aiming to control pharmaceutical drug abuse, Deputy CM OP Soni has directed all drugs control officers to check indiscriminate sale of habit-forming drugs
• “All drugs that cause addiction, especially among the young generation, should be restricted,” Soni said, asking them to keep tabs on stocking, sale and distribution of habit-forming drugs in the state
• The department is reaching out to public by organising seminars and meetings with chemist associations and students of various schools and colleges and making them aware about the ill effects of intoxicants under the ‘Roadmap for 100 days’

Having bled for over 12 years due to tax exemption in the neighbouring hill states, the Punjab-based pharma industry says that the centralisation will only add to their woes as they will be required to upgrade infrastructure and will also be subjected to red-tapism. The issue, they reason, is also against the spirit of federalism as the Centre is taking over a state subject.

Drug manufacturers in the state say that a unified/central drugs authority is sought to be created by the proposed Act that will divest the states of the powers to licence drug industry. It is pertinent that earlier Central Drugs Standard Control Organisation was similarly sought to be empowered twice as per Drugs Act Amendment Bill-2007 and Drugs Act Amendment Bill-2013. Both times the Bills were rejected by Parliament.

Talking to The Tribune, Jagdeep Singh, president of Punjab Drug Manufacturers’ Association, said it was after over 12 years that the pharma units in Punjab got a relief with the Goods and Services Tax rollout, which gave them a level playing field with the drug manufacturing units enjoying tax exemption in the hill states.

“During these 12 years, the units in hill states made huge profits and upgraded their infrastructure, which units in non-tax exempt states like Punjab, were not able to do. The 200 small units in the state have an average turnover of Rs 10-15 crore. These will then have no option but to shut shop. This will also impact the generic drug market, catering to the common man,” he said.

Labhnesh Jindal, a drug manufacturer in Ludhiana, said this was the third attempt at centralising the licensing. “Small manufacturers do not have finances to keep running to central agencies, or upgrading themselves each time a new licensing authority is created. The units in Punjab already suffered huge losses as buyers shifted to buying drugs from units in tax-exempt states before 2017, which could offer huge discounts,” he said.

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