Govt to expand Jan Aushadhi outlets to provide affordable medicines
Updated: Mar 13, 2014 12:26:17pm
New Delhi, Mar 13 (KNN) With a view to providing generic medicines at affordable prices to the public, the government is keen to expand the Jan Aushadhi campaign across various states.
Jan Aushadhi Campaign was started in 2008 with key objective of making quality generic medicines available at affordable prices for all, particularly the poor and disadvantaged, through specialized outlets called Jan Aushadhi Stores (JAS).
Over the years India, has developed a strong capability in producing quality branded and generic medicines in most of the therapeutic categories, evolving from a mere Rs 1,500 crore industry in 1980 to a more than Rs 1,19,000 crore industry in 2012.
However, although these medicines are reasonably priced, as compared to the prices of their equivalent medicines in most other countries, a large population of poor people in the country still find it difficult to afford the more expensive branded category of medicines.
Accordingly, 'ensuring availability of quality medicines at affordable prices to all', has been a key objective of the government and it has taken various steps to enable this.
The National Pharmaceutical pricing authority (NPPA) has been given the mandate to control and fix the maximum retail prices of a number of scheduled/listed bulk drugs and their formulations, in accordance with well-defined criteria and methods of accounting, relating to costs of production and marketing. As a result, prices of these medicines have remained quite stable and affordable.
Apart from the scheduled medicines under DPCO, 1995, the NPPA monitors the prices of other medicines not listed in the DPCO schedule, such that they do not have a price variation of more than 10 per cent per annum. This has further helped in keeping the prices of most of the non-scheduled medicines stable and affordable.
In addition, the government has fixed a uniform and low rate of 4 per cent VAT on medicines in the country. This policy has been adopted, in almost all the states in the country, and has reduced the incidence of sales tax on medicines and thereby assisted in keeping their prices low.
Further, as part of the Budget for 2008-09, the government has reduced the excise duty on medicines from 16 per cent to 8 per cent. This has been further reduced to 4 per cent as of 8th December, 2008. This has again, played a crucial role in keeping the prices of most of the medicines at reasonable levels.
However, the Department of Pharmaceuticals, Government of India was not satisfied with the regulatory and financial steps for ensuring greater availability of medicines at affordable prices to all, specially the poorer masses. Hence, it launched a country wide Jan Aushadhi Campaign.
It is the Bureau of Pharma PSUs of India (BPPI) which coordinates the marketing of the generic drugs through the Jan Aushadhi stores. It also coordinates the supply of medicines in the state from their own plants, other pharma PSUs pf central and state governments and private sector.
Apart from this BPPI coordinates with hospitals in preparation of formulary; monitors proper running of Jan Aushadhi stores with the help of other CPSUs; provides medicines as per rates decided in the Joint Forum / Core Committee; and monitors activities of Jan Aushadhi stores in the areas allocated to them.
BPPI is now looking for carrying and forwarding agents at Bhubaneswar, Bhopal, Chandigarh, Delhi, Guwahati, Jammu, Lucknow, Patna, Pune, Raipur, Ranchi and Zirakpur in Punjab; and in this context has invited bids from interested parties. (KNN/ES)
Jan Aushadhi Campaign was started in 2008 with key objective of making quality generic medicines available at affordable prices for all, particularly the poor and disadvantaged, through specialized outlets called Jan Aushadhi Stores (JAS).
Over the years India, has developed a strong capability in producing quality branded and generic medicines in most of the therapeutic categories, evolving from a mere Rs 1,500 crore industry in 1980 to a more than Rs 1,19,000 crore industry in 2012.
However, although these medicines are reasonably priced, as compared to the prices of their equivalent medicines in most other countries, a large population of poor people in the country still find it difficult to afford the more expensive branded category of medicines.
Accordingly, 'ensuring availability of quality medicines at affordable prices to all', has been a key objective of the government and it has taken various steps to enable this.
The National Pharmaceutical pricing authority (NPPA) has been given the mandate to control and fix the maximum retail prices of a number of scheduled/listed bulk drugs and their formulations, in accordance with well-defined criteria and methods of accounting, relating to costs of production and marketing. As a result, prices of these medicines have remained quite stable and affordable.
Apart from the scheduled medicines under DPCO, 1995, the NPPA monitors the prices of other medicines not listed in the DPCO schedule, such that they do not have a price variation of more than 10 per cent per annum. This has further helped in keeping the prices of most of the non-scheduled medicines stable and affordable.
In addition, the government has fixed a uniform and low rate of 4 per cent VAT on medicines in the country. This policy has been adopted, in almost all the states in the country, and has reduced the incidence of sales tax on medicines and thereby assisted in keeping their prices low.
Further, as part of the Budget for 2008-09, the government has reduced the excise duty on medicines from 16 per cent to 8 per cent. This has been further reduced to 4 per cent as of 8th December, 2008. This has again, played a crucial role in keeping the prices of most of the medicines at reasonable levels.
However, the Department of Pharmaceuticals, Government of India was not satisfied with the regulatory and financial steps for ensuring greater availability of medicines at affordable prices to all, specially the poorer masses. Hence, it launched a country wide Jan Aushadhi Campaign.
It is the Bureau of Pharma PSUs of India (BPPI) which coordinates the marketing of the generic drugs through the Jan Aushadhi stores. It also coordinates the supply of medicines in the state from their own plants, other pharma PSUs pf central and state governments and private sector.
Apart from this BPPI coordinates with hospitals in preparation of formulary; monitors proper running of Jan Aushadhi stores with the help of other CPSUs; provides medicines as per rates decided in the Joint Forum / Core Committee; and monitors activities of Jan Aushadhi stores in the areas allocated to them.
BPPI is now looking for carrying and forwarding agents at Bhubaneswar, Bhopal, Chandigarh, Delhi, Guwahati, Jammu, Lucknow, Patna, Pune, Raipur, Ranchi and Zirakpur in Punjab; and in this context has invited bids from interested parties. (KNN/ES)
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