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Medicine marketing in Kerala turning into a monopoly of north Indian pharma cos
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Peethaambaran Kunnathoor, Chennai
October 31 , 2014
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The medicine marketing in Kerala is gradually becoming the monopoly of
big manufacturing companies from north Indian states as small scale
units in the state are not able to make a foothold in the field due to
lack of support from government.
The government procurement
agency, Kerala State Medical Services Corporation (KMSCL), whose
operation has now come to a standstill, is not supporting the domestic
manufacturing units as is done in neighbouring states, say industry
sources. So, the state is not capable of manufacturing the required
quantity of drugs for its use and the situation is benefited by
manufacturers from north India.
Secondly, since internal feud is
going on in the trade body, All Kerala Chemists & Druggists
Association (AKCDA), the system of purchase and sale of drugs in Kerala
is in big trouble now. Lack of proper coordination by government,
unorganised status of the traders and the declining situation of small
scale manufacturing companies has totally crippled the conventional
system of marketing. Taking advantage of this unsteady condition, big
players and MNCs are eying Kerala as their propitious market for their
products.
Besides, the industry sources point out several other
factors that support a favourable market condition for outside
manufacturers, especially from north India. According to them eighty
percent of the total requirement is procured by KMSCL from pharma
companies from north India. But now, the functioning of KMSCL has
reached a standstill due to internal problems in the corporation and it
has affected its business. Doctors in the government hospitals are
helpless in directing the patients to the hospital pharmacies, so they
advise the patients to get the medicines from outside.
Several
civil and criminal cases are pending with the court against the
officials of AKCDA, hence there is no unity among its office-bearers and
their supporters. So, the situation in Kerala paves way for a
monopolistic marketing condition for a few pharma companies from other
states. The traders’ organisation is not able to coordinate its members
and resolve their problems.
This situation also helps the outside marketers to create a strong foothold in Kerala.
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