GST impact: Medicine shortage unlikely
A recent update by the market intelligence firm AIOCD-AWACS indicates that the inventory of medicines at the trade level was holding steady as on June 21.
- Jun 27, 2017,
- Updated Jun 27, 2017 8:24 PM IST
Indian drug makers are cautiously maintaining their inventory levels unlike all other trade and industry segments which are on a clearance binge to minimise their pre-GST inventory to ensure a smooth shift to the national Goods and Services Tax (GST) regime that kicks in on July 1.
A recent update by the market intelligence firm AIOCD-AWACS indicates that the inventory of medicines at the trade level was holding steady as on June 21.
"With one week to go for GST and more than three weeks of inventory at the distributor level (plus retail inventory of two-three weeks), overall, the pharma industry is in a positive situation, and we can positively affirm that there will be no consumer shortages," AIOCD-AWACS points out.
Except for anti-diabetic medicines, all major categories have, on average, three weeks of inventory at the distributor/retailer level. Below are the inventory days by therapy:
Indian drug makers are cautiously maintaining their inventory levels unlike all other trade and industry segments which are on a clearance binge to minimise their pre-GST inventory to ensure a smooth shift to the national Goods and Services Tax (GST) regime that kicks in on July 1.
A recent update by the market intelligence firm AIOCD-AWACS indicates that the inventory of medicines at the trade level was holding steady as on June 21.
"With one week to go for GST and more than three weeks of inventory at the distributor level (plus retail inventory of two-three weeks), overall, the pharma industry is in a positive situation, and we can positively affirm that there will be no consumer shortages," AIOCD-AWACS points out.
Except for anti-diabetic medicines, all major categories have, on average, three weeks of inventory at the distributor/retailer level. Below are the inventory days by therapy: