Alleging that medicines are increasingly being routed into Karnataka from external markets through unauthorised distribution channels, the Bangalore District Chemists and Druggists’ Association (BDCDA) has demanded “ethical pharmaceutical distribution” in Karnataka.
In a letter to all pharma manufacturers, BDCDA president B. Thirunavukkarasu has said these unauthorised movements often bypass company-appointed carrying and forward agents (CFAs) and stockists.
“This is posing grave risks, including entry of spurious medicines, tax evasion, regulatory non-compliance, MRP manipulation, and grey market dilution apart from undermining ethical chemist operations,” he said in the letter.
Agents operating without authorisation
Speaking to The Hindu, Mr. Thirunavukkarasu said that a particularly alarming trend is the rise of semi-wholesalers, sub-stockists, and third-party procuring agents who are operating without official authorisation, offering deep discounts and unethical trade incentives to retailers.
“Diverting products across States or sourcing them from untraceable sources by bypassing the company’s approved stockist network is creating price wars that destabilise market integrity. Such practices directly endanger public health, threaten company reputation, and create legal liabilities for all involved,” he said.
He explained that many of these semi-wholesalers, sub-stockists, and third-party procuring agents are becoming instrumental in routing pharmaceutical products to quick commerce and e-commerce platforms, often bypassing the regulatory framework and authorised distribution channels. “These online platforms may unknowingly stock diverted or unauthorised medicines due to the lack of traceability in sourcing. This undermines the role of licensed pharmacies, destabilises price discipline, and significantly increases the risk of unsafe or spurious medicines reaching the public,” he said.
Karnataka’s challenges and the steps it is taking
It may be recalled that last November five women died following Caesarean section deliveries at the district hospital in Ballari, and it was later found that they had been administered a substandard Compound Sodium lactate Injection IP (Ringer’s Lactate solution), an intravenous fluid that doctors use to restore hydration and fluid balance. While this was at a government hospital, experts say the larger concerns about spurious medicines across healthcare systems, remains.
In February this year, the Karnataka Health Department said that in the absence of an effective centralised system to recall spurious drugs from the market, it is set to come out with a State drug recall policy.
Karnataka has also sought the establishment of a special court to hear cases pertaining to the sale and the supply of spurious drugs and Not of Standard Quality (NSQ) drugs.
Under India’s Drugs and Cosmetics Act, 1940, any pharmaceutical company can sell its drugs in all States across the country, despite being licensed and inspected only by drug inspectors in the State where its manufacturing facility is located.
Erosion of supply chain integrity
In the letter, Mr. Thirunavukkarasu has alleged that there is a growing suspicion that certain medical representatives and field managers may be indirectly encouraging unauthorised supply linkages in an attempt to achieve monthly sales targets and qualify for incentives or promotional bonuses.
“Such field-level actions, even if isolated, erode the supply chain’s integrity and must be addressed urgently through internal audits and accountability mechanisms. We urge all pharma manufacturers to audit and cleanse your distribution network, verify all points of sale and route compliance in Karnataka. Besides, digital tracking systems with route validation and real-time visibility should be implemented,” the letter stated.
The letter also urges all manufacturers to ensure no unauthorised third-party agents are procuring or redistributing products. This can be done by discontinuing supplies or incentives to any stockist found to be enabling semi-wholesalers, sub-stockist, and third-party procuring agents or grey market channels, the letter stated.
“Besides, all medical representatives and sales managers should be guided to report unauthorised market movement. The field force should be sensitised on the risks of short-term gain over long-term brand damage. Pharmaceuticals are not mere commodities. They are life-saving products that demand the highest levels of accountability from manufacturing to dispensing,” Mr. Thirunavukkarasu added.
Published – May 10, 2025 08:39 pm IST
