KOCHI: The threat by retailers under the banner All Kerala Jan Aushadhi Association (AKJA) has put the future of the much-touted Pradhan Mantri Bhartiya Jan Aushadhi Programme (PMBJP) in the state at stake.
The programme launched to provide access to affordable medicines for all has drawn flak from retailers who allege fresh licences to new outlets will eat away their already waning profits. They said a majority of them were on the brink of shutting shop owing to dwindling revenue each month.To resolve the issues faced by retailers under the scheme, a team led by programme CEO Biplab Chatterjee held talks with the retailers in Kochi on Tuesday.
AKJA secretary Rajesh K said there are 153 retailers in Kerala, a majority of whom are in the red. “Currently, there are around 2,000 applicants for Jan Aushadhi stores. Some of them have already received licences. When a huge number of stores are opened at one go, it would be hard for the existing ones to stay afloat. If our demands are not met, we would be forced to go on the warpath,” he said.
At the meeting, the retailers also demanded the authorities to hike the commission by 40 per cent and provide additional incentives. “Even after a year since the launch of the Jan Aushadhi outlets, not a single retailer was able to make a profit,” the AKJA secretary said.
“Around `10-20 lakh had to be invested to start a single outlet. On a daily basis, each outlet clocked an average sales of `3000. However, after factoring in the salary for two pharmacists, electricity bill and other expenses, we are left with nothing. Already four outlets have been closed, and others will be forced to follow suit soon. We understand the government is providing essential drugs at subsidised rates through this programme. But without any income, how are we supposed to run the stores in the first place?” he asked.
Several retailers also raised concerns regarding the delay in providing stocks to outlets. With little branding or marketing, people are not aware of these stores. Biplab Chatterjee told ‘Express’ the issues raised by the retailers will be addressed at the earliest. The programme targets to cover the maximum number of people in the state, for which more outlets are required. “The programme, launched in 2008, was on the verge of closure till NDA Government came into power. Prime Minister Narendra Modi breathed life into the scheme.”
What the retailers are experiencing is mere growing pains that every business faces. As the programme is expanded, the profit margins will also rise, he said. Some of the charitable organisation, which had opened Jan Aushadi outlets as a non-profit venture, alleged there was a severe crunch of medicines at their stores.