There may be a huge shortage of medicines in the country, thousands of small companies are on the verge of closure, know the reason

New Delhi: The Health Ministry had recently made some rules for the manufacturing of medicines. Industry experts say that this may lead to shortage of medicines in the country and the prices may skyrocket. Many medium and small pharmaceutical companies say that they are not in a position to comply with the new rules and many of these units may be closed. The Health Ministry had recently issued a notification regarding changes in Schedule M. It has been made mandatory for all pharmaceutical companies to implement this.

Health Minister Mansukh Mandaviya had said in July last year that Schedule M should be made mandatory for all micro, small and medium companies in a phased manner. The Health Ministry says that companies with annual turnover of more than Rs 250 crore are required to implement the standards within six months from August 1, 2023. Small companies have been given one year’s time for this. But Laghu Udyog Bharti representative Sanjay Singla says that it is not easy for small and medium companies to implement the Revised Schedule M. He said that all the companies are ready to improve the quality but it will cost a lot. Many companies will be closed in this process. This will lead to shortage of medicines in the country and their prices will increase.

what is the catch

Singla said that small and medium companies have been given very little time to implement the amended rules. He said, implementing the new rules is a challenging task for small companies. This will increase their capex in the near term and lead to a permanent increase in their operating costs. Punjab Drug Manufacturers Association (PDMA) says that this will make it difficult to manufacture essential medicines included in the NLEM (National List of Essential Medicines). Due to the new rules, the cost of making these medicines will go above their ceiling price.