Movement of counterfeits in Indian pharma attributed to supply chain inefficiencies

Bengaluru, January 27, 2023:

Supply chain inefficiencies hinder the fight against counterfeit medicines and medical devices in India. This is despite the methods to check counterfeits like security labels, tamper evident seals, security tear tapes, tagger foils, security blister foils and serialization adopted by the Indian pharma industry.

This is where Authentication Solution Providers’ Association (ASPA) perceives that in order to combat this threat consumers play a pivotal role to combat sale of fake pharmaceutical products.

According to ASPA president Nakul Pasricha, an aware consumer holds the power to fight this menace. However, we must enhance consumer awareness about this issue. Consumers play the most crucial role in fighting against fakes. When many consumers are unaware of the actual threat from counterfeits, the country will never be able to harness the strength of active consumer participation in curbing the sale of fake products in the market.
 
In India, illicit goods trade stood at Rs. 2.6 trillion in FY 2019-20 which is affecting almost all sectors. Counterfeits are on the rise with a detrimental blow on the industry, and consumers by large, he added.

Pasricha’s comment comes after the ASPA and CRISIL released their first-of-a-kind report titled ‘State of Counterfeiting in India 2022’. Counterfeiting activities are affecting the sustainable growth of the major industries in India, including pharmaceuticals.  

Almost 89% of consumers acknowledge the presence of fake products in the market, and 31% willingly purchase counterfeit products. More awareness about using various authentication methods is the need of the hour. Consumers should also know how to report a counterfeit to the brand’s consumer helpline number or at consumer forums. Nearly 27% of consumers were unaware that the product was counterfeit at the time of purchase, the report noted.

An important finding of the survey was that consumer perception pegged the extent of counterfeiting at 25-30% of the market, higher than the general industry expectations to buy luxury brands, peer pressure, and social motivations.

“Counterfeiting is not limited to high-end luxury items. Even common items, from cumin seeds to cooking oil and from baby care items to medicines, are increasingly reported as counterfeit. An important finding of the survey was that consumer perception pegged the extent of counterfeiting at 25-30% of the market, higher than the general industry expectation,” noted Suresh Krishnamurthy, senior director, CRISIL Market Intelligence and Analytics.

India requires a comprehensive, proactive, and holistic counter approach. We need to make a significant change in increasing awareness, implementing authentication solutions, supporting these with robust track and trace infrastructure, and securing the supply chain against criminals. Since its inception, ASPA has made good progress in creating momentum in the fight against fakes in India, and we are committed to strengthening this momentum. We look forward to working with government departments, industry bodies, and institutions to develop more avenues to make India’s fight against counterfeiting more powerful, said Pasricha.

Consumer perception on the extent of counterfeiting: 20% of the market. Out of the total consumers surveyed across different cities, 32% in Hyderabad, 29% in Indore, 25% in Chennai, and 23% in Jalandhar came across counterfeit pharmaceutical products. The key reason attributed to this menace is the supply chain inefficiencies and the gap between demand and supply, stated Pasricha and Krishnamurthy. ExpressPharma