Number of pharma MSMEs in WB comes down to 67 from 800 in last 30 years due to lack of support from state govt

Chennai, April 9, 2022:

Although the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 mandates minimum 25 per cent procurement of annual requirement for goods and services from micro and small enterprises (MSEs), the government of West Bengal is allegedly not complying with the provisions of the Act to support the local micro and small pharmaceutical manufacturers.

According to pharma MSME Association of West Bengal, the pharmaceutical products manufactured by the local small scale manufacturing companies are ‘hostile’ to the local government and no procurement is made from the MSE units. The medical services corporation considers the MSME products as taboo.
 
Even if a small per cent of the medicines for the total requirement of the state is made from small scale sectors, no timely payment is done to encourage the industry. The entrepreneurs have to approach the state medical services corporation many times to collect their payment. The state’s small scale drug manufacturers are not getting any kind of encouragement or support from the state government, says Birendra Kumar Sarkar, president of the pharma MSME association of West Bengal.

Thirty years ago the state had more than 800 pharmaceutical companies and the entire India had the supply from West Bengal. The number came down to 300 in the year 2,000 when small-scale players flourished in other states. Again the number has decreased due to unfavorable conditions and lack of support from periodical governments. Today the number of pharmaceutical companies in the state is only 67 and that too is not performing well. Many of the units are on the verge of closure, Sarkar told Pharmabiz.
 
“Pharma industry in West Bengal is suffering from lack of care. The government has no concern about it. Administrative body is procuring medicines from big companies from other states without giving a helping hand to the local players. How can we survive when the government is avoiding us,” he asks.
 
He said the periodical rules and regulations introduced by the central government are also hindering the growth of the industry. The state drugs control department is not issuing licences for new drugs because of central laws. Further, the inspections and procedures of the regulatory departments also create difficulties for the entrepreneurs. There is nobody to listen to our voice. Recently, the industry association has apprised the health secretary and the director of the drugs control administration of their concerns. But no positive result has come out from the department so far.
 
When asked about the Ayush sector in the state, Birendra Sarkar said there are over 70 manufacturing units for Ayush medicines and all of them are getting incentives and encouragement from the Central Ayush ministry. When modern medicine manufacturers struggle for raw materials, the Ayush industry is getting it abundantly from the state itself. Whereas, the pharma MSME units depend on Maharashtra and Gujarat to procure raw materials.
 
A member of the West Bengal IDMA in anonymity said the state government thinks that if a person gets a disease or needs medicine he will buy it from wherever it is available. As long as demand is there for medicines, the manufacturers will produce and market the drugs through their distribution channels. So, the government needs not be concerned about its availability or the survival of the manufacturers. Pharmabiz