Close to 25,000 medical store operators in Gujarat join their nine lakh odd brethren across the country in down their shutters on Friday. They are protesting against the government for allowing online pharmacy stores to operate in the country. Store owners said that they are also opposed to FDI in online pharmacy as they indulge in predatory pricing to wipe out competition and then charge customers exorbitantly.
Medical store owners, under the aegis of The Federation of Gujarat State Chemists and Druggists Associations, on Wednesday, told media persons in the city that they will participate in the bandh called by All India Organization of Chemists and Druggists (AIOCD) against government's draft notification legalising e-pharmacies in the country.
"It not only involves the future of 9 lakh medical store operators across the country, but has wider ramifications with regard to long-term interests of consumers. The online pharmacies will offer SOPs as long as brick-and-mortar stores exist. After that, the turf will be open to them," said Alpesh Patel, president of the Federation.
Federation chairman Jashvant Patel said that there are isolated cases of monopolistic practices even now and the situation will worsen if online pharmacies are given a free hand to operate. "For certain drugs, manufacturers resorted to predatory pricing, eliminating competition. Now they have multiplied the price of products and customers have no choice," said Jashvant Patel.
They claimed no case of medical stores charging more from buyers has been reported as the price of drugs and margins are fixed by regulations like National Pharmaceutical Pricing Authority (NPPA) and Drug Price Control Order (DPCO). Maximum margin for retailers in pharmacy business is 20 per cent. On the other hand, online pharmacies offer discount of 30-40 per cent. They also allege that there is no watch on sale of narcotic drugs and those that help abort foetus. "We have examples of multiple deliveries on same prescription. So there is no check. Moreover, licences of online pharmacies allow them to conduct business from anywhere in the country, while Food and Drug Administration has local jurisdiction. All these will act as severe bottlenecks in ensuring a fair game," said Alpesh Patel.
