Spurious and Counterfeit Drugs are flourishing in India. Interestingly, Their Proliferation is aided by both the lack of Government intervention on one end and excess of it on the other
People take medicines to be cured of diseases; but the reverse is more of the norm, as substandard and spurious medicines are now widely available in India. A survey conducted by Central Drugs Standard Control Organisation (CDSCO) in India from 2006 to 2010 revealed that around 5% and 0.3% drugs are substandard & spurious respectively.
A raid by Delhi Police at central Delhi’s medical wholesale market, Bhagirath Place on June 3, 2011 and at Agra on June 8, 2011, brought to notice that 115 different kinds of medicines (worth Rs.4.2 million) were being sold without any licenses. Food and Drugs Administration Department also busted a major racket of spurious medicines at a godown in Kesri village near Saha Industrial Park and at a pharmaceutical company in Faridabad. Around 3.88 lakh spurious tablets have also been recovered from Lincoln Pharmaceutical Factory, Ambala. Although the Indian pharma industry is one of the fastest growing sectors, it is badly affected by this problem as the retail sector is extremely fragmented and unorganised. There are over 800,000 pharma retailers across the country, but the organized sector accounts for merely 2-3% of the business. Ranbaxy’s Fortis, Pantaloon’s Tulsi, Apollo Pharmacy et al are some of the few handful of organised pharmacy retailers in the business.
So is the answer forcing all unorganized pharmacists to sell off to an organized retailer? Not at all. Under the Drugs & Cosmetics Act, a drug retailing shop can be run only by a pharmacist and only after procuring a valid drug retailing license.
A raid by Delhi Police at central Delhi’s medical wholesale market, Bhagirath Place on June 3, 2011 and at Agra on June 8, 2011, brought to notice that 115 different kinds of medicines (worth Rs.4.2 million) were being sold without any licenses. Food and Drugs Administration Department also busted a major racket of spurious medicines at a godown in Kesri village near Saha Industrial Park and at a pharmaceutical company in Faridabad. Around 3.88 lakh spurious tablets have also been recovered from Lincoln Pharmaceutical Factory, Ambala. Although the Indian pharma industry is one of the fastest growing sectors, it is badly affected by this problem as the retail sector is extremely fragmented and unorganised. There are over 800,000 pharma retailers across the country, but the organized sector accounts for merely 2-3% of the business. Ranbaxy’s Fortis, Pantaloon’s Tulsi, Apollo Pharmacy et al are some of the few handful of organised pharmacy retailers in the business.
So is the answer forcing all unorganized pharmacists to sell off to an organized retailer? Not at all. Under the Drugs & Cosmetics Act, a drug retailing shop can be run only by a pharmacist and only after procuring a valid drug retailing license.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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IIPM: Indian Institute of Planning and Management
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
