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Over-dependence on state govts & poor supply chain management reasons for failure of Jan Aushadhi: Study
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Ramesh Shankar, Mumbai
July 24 , 2015
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A study conducted by the Public Health Foundation of India (PHFI) has
found that over dependence on support from state governments and poor
supply chain management are main reasons for the failure of the
department of pharmaceuticals' (DoP's) ambitious ‘Jan Aushadhi Scheme’,
launched by the department way back in 2008.
Against a target of
more than 1000 stores, just 182 Jan Aushadhi stores have been opened
across 16 states/UTs, out of which only 111 stores are in operation as
on 13.07.2015. As the scheme was progressing at a snail's pace, the PHFI
was asked by the DoP to study the scheme and suggest remedial measures.
The
PHFI in its report pointed out that over dependence on support from
state governments; poor supply chain management; non-prescription of
generic medicines by the doctors; state governments launching free
supply of drugs; and lack of awareness among the public are mainly
responsible for the scheme not being successful.
In the report,
the PHFI recommended to the government to take several remedial measures
for implementation of the scheme. They include increasing the number of
products from 361 to 504 medicines and 161 surgical and consumable
items; improving the supply chain mechanism through appointing
distributors and C&F agents in different states; increasing the
number of functional stores; strengthening the operating agency i.e.,
BPPI through augmenting of manpower; and relaxation in the eligibility
criteria of operating agency for Jan Aushadhi Stores (JAS).
The
‘Jan Aushadhi Scheme’ was launched by the government to make available
quality generic medicines at affordable prices to all, especially the
poor, throughout the country, through outlets known as Jan Aushadhi
Stores. Under the Jan Aushadhi Scheme, the state governments are
required to provide space in government hospital premises or any other
suitable locations for the running of the stores.
Bureau of
Pharma PSUs of India (BPPI) is to provide one-time assistance of Rs.
2.50 lakhs as furnishing and establishment costs, start up cost for
setting up a Jan Aushadhi Outlet. Any NGO/charitable
society/institution/self help group with experience of minimum 3 years
of successful operation in welfare activities, can also open the store
outside the hospital premises.
A margin of 16 per cent on the
sale price is built in the MRP of each drug. In addition, the JAS are
eligible for incentive linked to sale of medicines at 10 per cent of
monthly sales amount, subject to a ceiling of Rs. 10,000 per month for a
period of first 12 months. In case of stores opened in North Eastern
states and other difficult areas i.e., naxal affected areas/tribal areas
etc., the rate of incentive is 15 per cent of monthly sale amount,
subject to a ceiling of Rs. 15,000 per month.
According to sources, all out efforts are on to open at least 200 more Jan Aushadhi stores during this financial year 2015-16.
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