Now Reading: Centre mulls pharmacy licence ratio to curb misuse
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Centre mulls pharmacy licence ratio to curb misuse
The central government is considering a retail-to-wholesale pharmacy licence ratio based on population, disease burden and existing licence density. The proposal was discussed at the 70th Drugs Consultative Committee meeting of the…
The central government is considering a retail-to-wholesale pharmacy licence ratio based on population, disease burden and existing licence density. The proposal was discussed at the 70th Drugs Consultative Committee meeting of the Central Drugs Standard Control Organisation on 18 September, following a representation from the Akhil Bharatiya Pharmacist Association.
Currently, the Drugs Rules, 1945, do not prescribe numerical limits or demographic criteria for issuing drug licences, leaving state licensing authorities with wide discretion. This has led to significant interstate variation and alleged misuse of wholesale permits for retail sales. The pharmacists' association has proposed a ratio of one licensed wholesaler for every 10 retailers.
A government document reviewed by Mint says the framework aims to guide state licensing authorities with an indicative ratio, replacing the current need-based approach. The move could bring greater uniformity across states in India's Rs 1 lakh crore retail pharmacy market, which has 1.24 million licensed chemists and distributors.
Indian Opinion Analysis
The move targets a long-standing regulatory gap in India's pharmacy sector, where the 1945 Drugs Rules left state authorities without binding criteria for licence numbers. This has produced stark disparities: some states have far more wholesalers than justified by local demand, enabling wholesale licences to be used for retail sales without a pharmacist on site. The proposed ratio, likely modelled on the pharmacists' recommended 1:10 wholesaler-to-retailer benchmark, would for the first time give licensing authorities an objective demographic ceiling. State governments, which currently exercise near-complete discretion, will push back if the ratio restricts their local licensing decisions, particularly in states with high licence density. The CDSCO is expected to publish draft guidelines for public comment before any uniform framework is adopted.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
