Hyderabad: A week-long shortage of medicines in the first week of July is anticipated, as the wholesale depots have stopped supplying stocks. The new systems have to be upgraded according to the new rates of Goods and Services Tax at the stockists and retail level. The chemists are up in arms as they have refused to sell the existing stock of medicines from July onwards by incurring losses of 10 to 12 per cent. Due to no rebate being offered by the central government, the chemists claim that they will not sell their existing stocks at a loss. Retail chemists have stock worth Rs 14 lakhs to Rs 1 crore in their shops. Each of them have stocks of regular medicines which will last them for one to two months depending on the size of the establishment.
But since the first week of June, stockists and retailers are working towards selling maximum stock as they do not want to have excess left over as it will mean more loss. Patients who are suffering from hypertension, diabetes, cardiovascular diseases, neurological disorders and other lifestyle disorders and are regular customers are being called and asked to retain additional stocks.
But it can’t be done for sensitive medicines which require refrigeration and once they get to normal temperature have to be immediately used.
Mr Suman Gupta of Telangana Chemists’ Association explained, “We are anticipating a shortage of regular and chronic medicines in the first week of July. This is because the retailers are not in a mood to sell medicines at a loss of 10 to 12 per cent. Every day in Hyderabad, medicines worth Rs 100 crores are sold from all the hospital outlets and retail shops. There is going to be an inconvenience for people if the government does not agree to our demand for a rebate.”
All India Chemists and Druggists Association (AIOCD) members are speaking to the pharmaceutical industry and manufacturers to iron out and minimise the losses anticipated during the transition to GST. But so far it has not worked out. Mr Ramesh Gupta of Andhra Pradesh Chemists’ Association explained, “The government has allowed the pharmaceutical industry to avail credit up to 40 per cent of their GST liability against excise duty already paid on stocks lying with stockists. But traders want 100 per cent benefit. Why must traders bear the loss because of a new tax?”
