Shenanigams of All Kerala Chemists and Druggists Association

Friends,
How many Keralites know that in Kerala the price and availability of drugs, including life saving ones, are controlled by a now-infamous drug stores cartel called All Kerala Chemists & Druggists Association? Yesterday's local newspapers reported that the State Drugs Control Board and Drugs Intelligence Squad raided the Head Office of this organization and located hoards of life-saving drugs and evidence of illegal forceful collection of crores of rupees from drug companies. This organization illegally collects Rs. 2000/per month for each drug a company distributes in the state to issue a "trade margin "certificate without which no shop in the state will sell that drug. The confiscated records show that this organization is collecting more than Rs. 30 lakhs per month from drug companies. Not only this, this cartel issues warnings to shop owners to not to cell drugs, sometimes life-saving ones, that are not cleared by them. They also hoard medicines to create artificial scarcity and profit from panic-buying. The state authorities raided their head-quarters in response to complaints filed by several state-run fair-price medical stores to the effect that the cartel is preventing essential drugs to be distributed to them.
It may also not be common knowledge that drug companies routinely charge 5 to 10 times the actual cost of production from the public. More than 50 % of the price of a drug is paid as commission to whole sale/retail stores. All the extra expenses incurred by them is conveniently passed on to the customers as increased MRP. In most cases we may have to pay local taxes on this amount. So the net result of all the shenanigans of drug stores cartel etc is an added price burden on the consumer. Today's papers report that the Central Government is considering legislation to curtail the margin to 20 to 30 % from the current levels to the drug retailers. It will be a welcome move for the common man. It is high time that consumers get organized and demand protective measures from the Government against unwanted/unjustified price increases of the drugs they have to buy.