|
 The Bangalore District Chemists and Druggists Association (BDCDA) has asked the pharma manufacturers, marketers and C&F Agents to strengthen the ethical pharmaceutical distribution in Karnataka by making the intra-state systemic corrections in credit structures.
BDCDA president B Thirunavukkarasu said that this is a matter of serious concern impacting the integrity of the ethical pharmaceutical distribution system in Karnataka.
In recent months, incidents such as counterfeit medicines, contaminated cough syrups, and the smuggling of codeine-based formulations as reported in Uttar Pradesh, and suspected counterfeit drug manufacturing within the Industrial Estate, Mettupalayam have exposed severe regulatory gaps. What is most alarming is that the seized products were top, high-value, high-demand brands of reputed pharmaceutical companies. This clearly indicates a deliberate attempt to destabilise the healthcare ecosystem with a corrupt supply chain, shaking public trust, he added.
According to Thirunavukkarasu, the alert further directs all inspectors to remain vigilant and take stringent action under the Drugs & Cosmetics Act against such incidents.
We have uncovered a serious operational lapse within the distribution ecosystem. The root of this issue lies in the present credit-period system which is still being followed. The seven days credit for local supplies and 21 days credit for out station are outdated, fuelling unethical trade flows, said Thirunavukkarasu.
These timelines were established decades ago when transportation was slow and infrastructure was poor. Those conditions are gone. Karnataka’s logistics network is today capable of next-day delivery to almost any district and immediate day-return shipments to Bengaluru. Yet, the outdated credit model remains and it is being exploited, noted the BDCDA president.
Medicines from reputed companies, especially fast-moving SKUs, are being lifted from districts on 21-day credit and routed into Bengaluru within 24 hours. They are then pushed back to multiple districts by procuring agents, semi-wholesalers and sub-stockists, laced with high cash discounts, unofficial trade offers and trade incentives creating an artificial arbitrage market that undermines the entire formal distribution chain, he pointed out.
Every district already has a company-authorised wholesaler appointed to serve that area ethically. But these authorised wholesalers are being betrayed by a parallel group operating outside the system. This creates an unfair scenario where genuine wholesalers lose business in their own territory. The discipline collapses and the manufacturer credibility is undermined. Besides, counterfeit or poor-quality products find easy entry through uncontrolled pathways, he said.
Therefore, our request to manufacturers is to rationalize the credit periods. Giving 5 days for local and 10 days for out of state supplies will help to align with current logistics and block credit-driven diversion, he said.
There is a need to enforce territorial jurisdiction by enduring supplies are made strictly through authorized stockists. These corrective steps are essential to protect brand credibility, stabilise the market, uphold ethical trade, safeguard the public, and restore fairness for compliant wholesalers. Here BDCDA is working constructively with manufacturers to rebuild trust, enforce discipline, and strengthen the authorised supply chain for the long term, said Thirunavukkarasu.
|