Last Updated on July 27, 2023 by The Health Master
Criteria for Issuing Sale Licences
The Tamil Nadu Pharma Traders Association (TNPTA) has recommended changes to the criteria for issuing fresh sale licenses in order to address the proliferation of medical stores and support existing drug traders.
Drawing inspiration from the Government of Punjab’s 2019 policy decision, the TNPTA suggests implementing stricter regulations, such as a minimum population threshold and distance requirements for new drug stores.
1. Proposed Changes to Criteria for Fresh Sale Licences
Urban Area Criteria:
Minimum Population Threshold:
The TNPTA proposes that a minimum population of 5,000 individuals should be necessary to warrant the issuance of a fresh sale license in urban areas. This measure aims to curb the excessive growth of medical stores.
Distance Restriction:
A prerequisite for granting a new retail license in urban areas should be a minimum distance of 500 meters from the nearest existing drug store. This provision helps ensure a reasonable distribution of medical stores and avoids clustering.
Rural Area Criteria:
Minimum Population Threshold:
In rural areas, the TNPTA suggests reducing the minimum population requirement to 2,500 individuals. This adjustment acknowledges the lower population density in rural regions.
Distance Restriction:
For rural areas, the association recommends a reduced distance requirement of 300 meters between the new drug store and the nearest existing retail outlet. This modification accounts for the sparser population distribution in these areas.
2. Additional Licence Granting:
Population Increase Requirement:
The TNPTA advocates for granting additional licenses only after a proportional increase in the population of both rural and urban areas. This measure ensures that the number of medical stores aligns with the evolving needs of the population.
3. Impact and Rationale:
Curbing Mushrooming of Medical Stores:
The TNPTA believes that implementing these changes will effectively control the rapid growth of community pharmacies. This proliferation poses a significant challenge to existing pharmaceutical businesses nationwide.
Support for Existing Traders:
The association argues that the increase in the number of retailers does not negatively impact wholesalers, who are in favor of granting more retail licenses. By implementing the proposed changes, the livelihoods of existing drug traders can be protected and supported.
4. Association’s Memorandum to the Government
In a memorandum submitted to the Chief Minister and Health Minister of Tamil Nadu, the TNPTA highlights the potential benefits of adopting these policy changes.
The association emphasizes the importance of tailoring license granting criteria to each state and asserts that this decision will positively impact the 40,000 chemist stores operating in urban and rural areas of Tamil Nadu.
5. Insights from Other States
Punjab’s Policy Decision:
The Government of Punjab implemented a similar policy in 2019 to regulate the sale of habit-forming drugs through pharmacies in both rural and urban areas.
The need for this policy arose due to complaints from the public regarding the illegal sale of such drugs.
The government recommended changes to the license conditions, and modifications were made in 2019, including a reduced distance requirement of 100 meters between stores.
Also read: Eligibility criteria for grant of wholesale and retail licences: Punjab
Kerala’s Policy Decision:
The Government of Kerala previously enacted a policy in 2003, following a provision in the Drugs and Cosmetics Act, allowing states to modify license granting conditions.
The Kerala government implemented a criterion of a 100-meter distance requirement to control the proliferation of pharmacy stores.
Although the policy faced legal challenges, the court upheld the government’s authority to make policy decisions.
Conclusion:
The TNPTA’s proposal to amend the criteria for issuing sale licenses aims to address the rapid growth of medical stores in Tamil Nadu.
By establishing population thresholds and distance restrictions, the association seeks to ensure a balanced distribution of pharmacies and protect the livelihoods of existing chemists. Similar policies have been implemented in Punjab and Kerala
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