CHENNAI: Pharmacies are grappling with a shortage of medicines as a result of the recently-implemented Goods and Services Tax. Many customers are having to go back empty-handed, while others are stocking up on regular medication, if available, so that their course isn’t disrupted.
Under GST, most medicines are expected to be taxed at 12 per cent while essential drugs, including insulin, will be taxed at 5 per cent. However, a churn is happening at both wholesale and retail levels that is affecting businesses and customers alike. “It’s quite a grave situation,” said a pharmacist based in Vepery, on the condition of anonymity.
“Many medicines are not available, and no one seems to know what’s happening. Of the 12 distributors that I get my stocks from, only three have medicines readily available.”
These pharmacists are at the receiving end of not just the GST blow but also disappointment and helplessness of patients. “I have so many customers coming, but hardly any medicines to sell,” said V Magesh, a pharmacist in Mylapore.
“I know how necessary a medicine can be for patients, and the government should either have prepared us better for transition or done it in a phased manner. In this rush to reform, the Prime Minister should not forget things cannot change overnight.”
Most pharmacists in the city have been selling drugs at old rates, without adding the current levy. However, they do not know how long they will be able to keep up this practice, as they feel they are the ones at the losing end. “We’re really in a fix,” said another pharmacist in Adyar.
“We don’t have medicines with new rates, neither can we add the levy to old stocks. How do we run a business in this environment? Sure, GST will be great in the long run, but who will reimburse us for the losses in the interim?”
Customers are the ones facing the hardest time. For Sheila Bedi, who lives in Dubai and was in India recently, GST was a spoke in the wheels as she banks on getting her medication on her visits here. “My medication is not available in Dubai,” she said.
“I’m on long-term treatment, which is why I purchase medicines for a six-month course in India. This time though, I couldn’t because my regular chemist could not arrange medicines in time due to shortage as a result of GST.”
Bedi, however, managed to find a pharmacist with some stock, so she bought enough to last her four months. “I don’t know what I’ll do once it runs out,” she said. “Either I’ll have to make a trip to India or it’ll have to be sent through someone, as most courier services don’t accept medication. It’ll be a real task but will have to be done because medication is a necessity.”
Another patient, Shankar (name changed), was not able to get his diabetes medication in any pharmacy near home. “No pharmacy in Neelankarai seems to have my medicine,” he said. “My doctor is in Vannandurai so I’m rushing there now. I generally take six tablets, of which I have four left, and hopefully I’ll get the other two at the pharmacy near the doctor’s clinic.”
Shankar bought enough medication to last a month. “I don’t trust (Narendra) Modi. He keeps springing surprises, yesterday it was demonetization, today GST, tomorrow god knows what else he’ll say! In the bargain, my health should not suffer!”