Traditional pharmacy owners are up in arms against new-generation outlets offering heavy discounts.
| Photo Credit: Photo for representational purpose
The Kerala State Drugs Control department has begun acting against medical shops displaying boards that offer arbitrary discounts on drugs.
According to sources, drug inspectors and assistant drug controllers have been authorised to check if the shops are putting up misleading advertisements that can influence the purchasing decisions of consumers. Based on a complaint from the All-Kerala Chemists and Druggists Association (AKCDA), a drug inspector in Alappuzha has reportedly begun an inquiry against a newly opened shop in the district.
This follows a recent circular issued by K. Sujith Kumar, State Drugs Controller, based on the orders of the Kerala High Court. In the circular dated July 17, Mr. Sujith Kumar says that the court had on June 19 upheld the State Drugs Controller’s authority to seek an affidavit from medical shop licencees while applying for or renewing a drug licence, undertaking that they will not display discount boards with misleading or vague claims about drug prices.
The court had also clarified, however, that there is no ban on selling drugs below the maximum retail price, and that it is not illegal to give an actual discount to customers. Exhibiting boards with misleading or vague advertisements offering discounts alone is restricted. Medical shops should not display or install discount boards, banners, posters, hoardings, or digital display systems with misleading or vague claims on the prices or discounted prices of drugs. All announcements related to drug prices should be transparent, honest, clear, and examinable. The existing licensees and those applying for new licences should give the required affidavits in the prescribed manner, the circular says.
The departmental action also comes against the backdrop of a legal dispute between traditional pharmacy shops and new-generation outlets offering discounts between 20% and 80%. A section of such new pharmacies, too, had approached the High Court. Official sources say that concerns have been raised about the quality of drugs coming to Kerala via dealers not directly authorised by pharmaceutical companies.
A.N. Mohan, president, AKCDA, says that the manufacture and sale of drugs are regulated under the provisions of the Drugs and Cosmetics Act and the Drugs and Cosmetics Rules. He points out that the prices of medicines are directly controlled by the National Pharmaceutical Pricing Authority, under the Drugs (Prices Control) Order, 2013, wherein the margins fixed are between 8% and 16% for controlled category medicines like insulin drugs and between 10% and 20% for de-controlled products for wholesalers and retailers, respectively. “When retail chemists gets 16% margin on products like insulin, how can new-generation shops offer 25% to 80%? Either it is their calculated attempt to finish off small retail chemists, who have been in this business for years, and monopolise the medicine trade with their money power, or to procure medicines from unauthorised sources with doubtful quality. Also, objectionable advertisements are banned under the Drugs and Magic Remedies [Objectionable Advertisements] Act,” Mr. Mohan says.
Published – August 10, 2026 07:29 pm IST