Jan Aushadhi retailers ask govt to review minimum distance policy

Retailers say proximity of new outlets is hurting sales and seek higher trade margins along with GST loss compensation under the Jan Aushadhi scheme

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Retailers of affordable medicines under the Jan Aushadhi Kendras (JAKs) on Monday said the government has assured them of a review of the zero distance policy, which allows two outlets to operate in close proximity.

 

Notified in September this year, the zero distance policy removed the earlier requirement of maintaining a minimum distance of 1 kilometre (km) between two JAK outlets in cities with populations exceeding 1 million.

 

The government has previously stated that the move was intended to improve public access to affordable generic medicines and help achieve the target of opening 25,000 JAK stores by March 31, 2027.

 

At present, 17,000 JAKs are operational across the country, offering a product basket comprising 2,047 drugs and 300 surgical items.

 

Retailers raise profitability concerns

 

Commenting on the development, the Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJK) Retailers’ Association said it met senior government officials and requested a rollback of the revised policy for setting up new stores in urban areas.

 

The body, which represents retailers from 10 states, said the policy adversely affects the profitability of existing outlets.

 

Apart from this, the association has also demanded an increase in trade margins on the sale of drugs to 35 per cent from the current 25 per cent.

 

Additionally, the group has sought financial support to offset losses incurred due to the Goods and Services Tax (GST) revamp that came into effect on September 22.