Drug inventory remains below pre-GST level

A reduction in inventory level would mean lower working capital requirement

Drug inventory with distributors rose to 30 days at end of September, but still remains below the pre-GST level as the trade channel looks to reduce working capital requirement.

In the run-up to the implementation of GST, the inventory level of medicines with distributors fell to 17 days at the end of June from 40 days at the end of May. This has now increased to 30 days, according to AIOCD-AWACS, the market research wing of All India Organisation of Chemists and Druggists. GST came into effect from July 1.

“Restoration of inventory levels to the pre-GST level may not