Take action against e-pharmacies for providing predatory pricing: AIOCD tells Niti Ayog

A delegation of AIOCD held a meeting with Dr V K Paul, Member, Niti Aayog, who is also heading the health vertical - an authority to frame policy Instrumental person in many health-related policies and planning - and expressed concern about the same.

The delegation appealed for actions against indiscriminate, illegal discounts being offered by corporate retail chains and online pharmacies, which they claimed were flouting rules of the Drug Acts, Pharmacy Act, and Medical practice ethics.

"This has impacted small retailers, and wholesalers, across the country," complained the delegation led by AIOCD president JS Shinde while submitting a memorandum to Dr VK Paul.

AIOCD's general secretary Rajiv Singhal, organizational secretary Sandeep Nangia, and joint secretary Vaijanath Jagushte were also present.

"We submitted a detailed memorandum with proofs including advertisements issued in the public domain with discounts offers to the extent of the bellow purchase price as per company pricelist," an official statement from the AIOCD said on Friday.

This is nothing but predatory prices and objectives to small pharmacies driving out of the market to create a monopolistic situation, in the long run, the statement read.

"It was brought to the notice of Dr Paul that the retailers, with the fixed margin by the government, get a 16 percent margin on scheduled drugs and 20 percent margin on non-scheduled drugs. But e-pharmacies/corporate retail chains offer 30 to 40 percent discounts by advertising, disregarding provisions of Laws," the statement said while adding that AIOCD's memorandum highlights each and every provision of all Drug Laws, Pharmacy Act.

The AIOCD has also mentioned that such illegal practices are leading to nationwide agitation. "A nationwide agitation would be launched if immediate action is not taken on the matter," they said.

As per the AIOCD, there are around 12 lakh retains/wholesalers. "Dr Paul patiently heard and noted all issues that were raised by the AIOCD in the meeting and suggested submitting further specific information," the statement said.