Lok Sabha Question No. 2954 (UNSTARRED), answered on 2016-03-15
Subject: Government Pharmacies
Ministry: CHEMICALS AND FERTILIZERS
Asked by: V. SATHYABAMA

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

## LOK SABHA UNSTARRED QUESTION No. 2954 TO BE ANSWERED ON 15 th  MARCH, 2016

## Government Pharmacies

## 2954. SHRIMATI V. SATHYA BAMA:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether the Government has any plan to start Government Pharmacies to provide medicines and drugs for the needy poor people free of cost or at low cost;
- (b) if so, the details thereof;
- (c) whether the Government has taken up the issue with the drug manufacturers to check the improper methods of the sale of drugs being adopted by them;
- (d) if so, the outcome thereof and the further steps taken by the Government in this regard; and
- (e) the steps taken by the Government to check the sale and use of banned drugs in the pharmacies and hospitals in the country?

## ANSWER

## MINISTER OF STATE IN MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI HANSRAJ GANGARAM AHIR)

- (a) and (b)  :  With  a  view  to  achieving  the  objective  of  making  available  quality medicines at affordable prices, the Government has been taking several regulatory and  fiscal  measures  from  time  to  time.  In  order  to  provide  further  relief  to  the common  man  in  the  area  of  healthcare,  a  countrywide  campaign  for  ensuring availability  of  generic  medicines  at  affordable  prices  to  all,  in  the  name  of  'Jan Aushadhi', was launched by the Department of Pharmaceuticals in November, 2008 in collaboration with the State Governments as a direct market intervention strategy.

Under the Jan Aushadhi Scheme, those Jan Aushadhi Stores proposed within Government  hospital  premises,  a  one-time  financial  assistance  to  the  extent  of Rs.2.50 Lakh (Rs. 1 Lakh for furnishing, Rs. 50000/- for computer and peripherals, Refrigerator etc. and another Rs 1 Lakh worth medicines to commence operations) is granted. Besides,  the  Jan  Aushadhi  Stores  run  by  private  entrepreneurs/ pharmacists/  Non-Governmental  Organizations/  charitable  organizations  that  are linked  with  the  Bureau  of  Pharma  Public  Sector  Undertakings  of  India  (BPPI),  the implementing Agency through internet will get an incentive upto Rs. 1.50 lakh.  This will be given @ 10% of monthly sales subject to a ceiling of Rs. 10,000/ per month upto a limit of Rs.1.5 lakhs. In North-Eastern States, Naxal Affected areas and tribal areas, the rate of incentive will be 15% and subject to a monthly ceiling of Rs. 15,000 and total limit of Rs. 1.5 lakhs. The margin available for the Retailers is upto 20% and for Distributors upto 10% has also been increased so as to ensure a reasonable level of profitability for them.

(c)  to  (e)  :  The  Department  of  Pharmaceuticals  has  prepared  a  Uniform  Code  of Pharmaceuticals Marketing Practices (UCPMP) which is being adopted voluntarily by Pharmaceutical  Companies  including  Medical  Devices  Industries  with  effect  from 01.01.2015 and it has last been extended up to 31.03.2016. This was reviewed and it has now been decided to make the same statutory.

The manufacturing, sale and distribution of drugs in the country are regulated under  the  provisions  of  Drugs  &  Cosmetics  Act,  1940  and  Rules,  1945  made thereunder through a system of licensing and inspection. License for manufacturing, sale and distribution of drugs are granted by State Licensing Authorities appointed by respective State Governments. Selling  of  banned  drugs  is  a  violation  of  Section  18(c)  of  the  said  Act  and punishable with imprisonment for a term which shall not be less than one year but which may be extended to two years and with fine.

State  Licensing  Authorities  are  legally  empowered  to  take  action  against violations of any of the conditions of such Licenses including sale of banned drugs.

The meetings of Drugs Consultative Committee (DCC), a Statutory Committee  under the said Act, comprising of all States /UTs Drug Controllers as members are held from time to time  and  various  issues  related  to  manufacturing, sale and distribution of drugs are discussed/deliberated and decisions are taken for effective & uniform implementation of the various provisions of the said Act & Rules.

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