AP Saves ₹2.21 Crore On Homoeopathy Medicines
A review of past procurements revealed that during the previous government’s tenure, the same company supplied medicines to AP at rates 13% higher than those charged to Karnataka.
VIJAYAWADA: A significant reduction in the procurement cost of homoeopathic medicines has saved Andhra Pradesh Rs 2.21 crore, following direct intervention by Health minister Satya Kumar Yadav. The ayush department had proposed purchases worth nearly Rs 14 crore for the current financial year.
Despite issuing tenders twice for a Rs 4-crore batch, only one bidder — Kerala government-run Homoeopathic Cooperative Organisation (HOMCO) — responded. As the medicines were urgently required, the department sought the minister’s approval to proceed with the single bidder. While granting permission, he instructed officials to assess the reasonability of the quoted price.
Following detailed negotiations, officials succeeded in reducing the price by 16.88%, nearly 17%, resulting in substantial savings for the state.
A review of past procurements revealed that during the previous government’s tenure, the same company supplied medicines to AP at rates 13% higher than those charged to Karnataka. The renegotiated price is now 6.04% lower than Karnataka’s earlier rate and 6% lower than AP’s own procurement cost in 2023–24.
Under the revised contract, medicines worth `14 crore will be procured this year comprising 162 varieties supplied to 207 homeopathy dispensaries and three teaching hospitals.
The minister congratulated Ayush director Kothamasu Dinesh and officials for securing savings through effective negotiation.