Retail trade in Tamil Nadu opposed to allowing FDI in pharmaceutical business

The Tamil Nadu Chemists and Druggists Association (TNCDA), the body representing retail pharmaceutical traders in the state, has strongly objected to the proposed introduction of foreign direct investment (FDI) on the pharmaceutical retail business sector.

The association has, in a memorandum to the Parliamentary Committee on FDI, said allowing FDI on retail pharma sector would finish off all the retailers from the market and create a situation of non-availability of drugs in rural areas. The foreign players will concentrate on the metros and on big cities and they will not target the rural masses, the traders told the parliamentary panel.

According to N Anandan, secretary of TNCDA, his association would not support the union government for its decision to allow FDI in retail, whereas it would support the state government for its objection against the foreign investment. Anandan said he will raise objection in this regard as he has to protect the interests of 40000 retail chemists in the state. Stating that due to the increasing number of chain stores, the retail pharma sector is now struggling. With opening up of retail sector to foreign companies to invest will totally wipe out the poor pharma retailers from the market.

“The entire retailers will be badly affected. Now all the consumers are satisfied as they get all kinds of drugs in their villages at cheaper rates. The foreign investors will concentrate on businesses in cities and towns. It will expunge the existing retailers from every corner. We are opposing the move of the central government inviting foreign companies through FDI,” he told Pharmabiz.

Recently, the supreme court of India said the interests of small traders should not be affected by FDI in retail. The parliamentary panel consisted of seven members who visited Orchid Chemicals in the morning. The members of Parliament held separate discussions with manufacturers and also met the state health secretary and the drugs control staff.

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