Major industry bodies, Indian Drug Manufacturers Association (IDMA), Organisation of Pharmaceutical Producers of India (OPPI) and the All India Organisation of Chemists and Druggist (AIOCD), have agreed on the issue.

AIOCD will also look into the issue of trade margin on imported formulations. The issue was taken up with AIOCD by IDMA and OPPI.

AIOCD is further working out a standard PIS fee schedule in consultation with IDMA and OPPI and has promised not to have a dual payment in town/state to different associations.

The product information service is an ongoing issue under which the chemists have been charging huge money from the pharma companies for introducing or launching new products. According to industry sources, the resolvement of the issue will improve availability of new product into the market at a reasonable price to the customer.

These issues were taken up at a recently held meeting between the industry associations, Indian Drug Manufacturers Association (IDMA) and Organisation of Pharmaceuticals Producers of India (OPPI) and All India Organisation of Chemists and Druggist (AIOCD). However, the issue of imposing margins (inclusive of excise) on the non-scheduled drugs was not taken up in the recently.

Under the agreement between AIOCD, OPPI and IDMA, product information service will be simplified for established IDMA and OPPI members who are already complying with trade obligations. It has been further decided that product information service information regarding prices and new products will be made available to chemists.

The life saving drugs which are imported in small quantities carry a high import duty of 63 per cent. The mark-up on scheduled drugs in only 50 per cent and the industry is losing by giving trade margins of 8 per cent and 16 per cent. The industry associations have asked AIOCD not to insist on 10 per cent and 20 per cent trade margins for non-scheduled imported drugs. The proposal to reduce the discounts of 8 per cent and 16 per cent in case of scheduled imported formulations because of the low mark-up.

Among other issues, the long-outstanding issue of reduction of credit period for upcountry stockists from 21 days to 15 days with corresponding reduction of 7 days in agreed inventory-keeping levels was taken up in the meeting. A final decision to introduce a standard invoicing pattern was also agreed upon by AIOCD.