TNCD Amaipu to begin agitation against unethical trade practices by corporate entities

Chennai, January 31, 2023:

The Tamil Nadu Chemists and Druggists Amaipu (TNCD Amaipu), the trade body of the splinter group of the state chemists and druggists association enjoying support of 23 district committees, has decided to prepare for agitation programmes from the first week of March against inaction from government agencies on unethical trade practices by corporate entities by indulging in predatory pricing.
 
The association finds that the corporate biggies who provide discounts on all medicines sold on the internet (e-pharmacy) by reducing the original MRPs in order to create competition to force the small traders to leave the market.
 
The state unit’s agitation is a part of nation-wide agitation likely to be held by the AIOCD from February 15 raising the same slogan throughout the country. The All Indian Organisation of Chemists and Druggists have already intimated the government of India that they will hold national agitation from February 15 unless action has been taken against e-pharmacy to contain the rising unethical trade practice, said T Natarajan, secretary of the TNCD Amaipu.  
 
He said the national president of the AIOCD, J S Shinde and the general secretary Rajiv Singhal, on January 23 sent a detailed letter to the Prime Minister Narendra Modi urging him to consider the survival issue of around 12 lakh pharma retailers and wholesalers in the country in the wake of a cutting-throat competition from the e-pharmacy corporate. According to him, in addition to the issue of internet sales, TNCD Amaipu will raise other issues such as the onslaught of discount pharmacies and the dual pricing by manufacturing companies on same products they supply to government stores and to private sellers. He wanted the National Pharmaceutical Pricing Authority (NPPA) to urgently restrain such manufacturers and stop the unfair trade practices in pharmaceutical business.    
 
Briefing Pharmabiz about the impending national agitation, Natarajan said he along with a group of trade-leaders from Tamil Nadu will go to Mumbai to meet the national president Shinde and invite him to Chennai to inaugurate the agitation programme. The national organizing secretary Sandeep Nangia from New Delhi, association secretary Rajiv Singhal from Indore, and state association office-bearers from all the south Indian states will be invited. Earlier the agitation was scheduled to be held in the Month of January in front of the district collectorate in Chennai, but when the AIOCD decided to intimate the government about its plan for an agitation on the same issue from February 15, TNCD Amaipu has also decided to express its full solidarity with the national body. However, he raised a concern that some office-bearers of the dormant state affiliate of the AIOCD may prevent the national leaders from attending the agitation program in Chennai.
 
Meanwhile, the national trade body, AIOCD has informed the Prime Minister Narendra Modi that despite several democratic representations made by the association to all the concerned authorities, no positive step has been taken so far to restrain online pharmacies or act against the corporate biggies for their illegal trade practice. AIOCD says that the 12 lakh pharma traders in India are now undergoing a crucial situation which becomes a challenge to their existence. The association alleges that the corporate entities are adopting a policy to completely eliminate the small chemists by offering a huge discount which is more than the specified mandatory margin to a retailer.
 
According to AIOCD, the predatory pricing policy of the corporate biggies will push a large section of the traders, both retailers and wholesalers, out of their business domain creating a situation for the corporate companies to establish a monopolistic situation in a short span of time. In the letter the national leaders have said that they are very much concerned about the future of 12 lakh chemists and druggists, their business, employees and their family members unless minister level intervention has come from the side of the Central government.
 
The letter sent to the prime minister says that the High Courts in Delhi, Mumbai and Chennai observed from different petitions that e-pharmacies were operating illegally and action against such sales was needed.

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