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The All Food and Drug Licence Holders Foundation (AFDLHF) has announced a complete boycott of the Maharashtra Medical Goods Authority (MMGPA) tender process, citing serious concerns over the introduction of an unlawful and anti-competitive “Bunch Bid” clause impacting Pharma Micro, Small and Medium Enterprises (MSMEs).
AFDLHF spokesperson stated that the clause contradicts the objectives of the MSME Act, public procurement policy, and promotes monopolistic control by select large suppliers.
“This tender condition has been cleverly designed to eliminate MSME device manufacturers from the bidding process. No genuine Indian manufacturer can participate under this bunch bidding structure. It is discriminatory, arbitrary, and against the principles of fair procurement,” stated AFDLHF spokesperson.
A Bunch Bid clause is a provision in procurement, especially on platforms like India's Government e Marketplace (GeM) that allows a buyer to group multiple, related products or services into a single tender, rather than creating separate bids for each item, simplifying procurement, leveraging volume, and applying unified terms like quality standards or support requirements across the whole bundle.
MMGPA has been established by MMGPA Act March 17, 2023. MMGPA Act has been established to make special provisions for ensuring single point procurement of certain medical goods and execution of turnkey projects with highest standards of transparency, fairness and equity. It has been aimed for timely supply of medical goods at optimum and uniform rates of desired quality for health institutions under the Maharashtra state government. MMGPA is empowered to procure goods for certain other institutions also, if they so request through the MMGPA.
According to the AFDLHF, the newly inserted clause mandates that bidders must supply an entire group of medical devices as a single bundle, instead of allowing item-wise participation. This condition, as stated by AFDLHF, directly violates the rights of Indian MSME manufacturers, most of whom manufacture specialised individual products and cannot meet such bunch-based requirements.
AFDLHF has urged the concerned authorities to immediately withdraw the bunch bid clause and restore item-wise bidding, enabling equal opportunity for all legitimate manufacturers. It confirmed that until corrective action is taken, it will continue its official boycott and has requested all stakeholders to join the protest to safeguard the interests of Indian MSME manufacturers.
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