A significant drop in the purchasing and consumption of medicines among Malayalees has left numerous pharmacies in Kerala struggling to stay operational. According to AN Mohanan, the President of the All-Kerala Chemists and Druggists Association (AKCDA), around 80 to 100 drugstores in each district are forced to shut down annually due to declining business.
Around 80 to 100 drugstores in each district are forced to shut down annually due to declining business.AN Mohanan, President of the All-Kerala Chemists and Druggists Association (AKCDA)
Once a thriving pharmaceutical hub, Kerala boasted an annual sales growth of 10-15% and ranked among the top five drug markets in India. However, the state is now facing a noticeable decline in its pharmaceutical sector, Mohanan shared with Manorama Online.
In 2021, Kerala’s pharmaceutical market recorded a turnover of ₹11,100 crore, which rose to ₹12,500 crore in 2022 and ₹14,850 crore in 2023, reflecting a growth rate of over 10% annually. However, the turnover for 2024 is projected to reach only ₹15,000 crore, highlighting a sharp deceleration in growth.
Kerala's Pharmacy Landscape:
The state has approximately 29,000 licensed drugstores, with around 18,000 runs by private entities. The remaining outlets are managed by large pharmaceutical chains or fall under government and cooperative initiatives, including Jan Aushadhi, Sevana, and Niti.
Reduced Dependence on Medicines:
Mohanan points out that the government’s strict implementation of Operation Amrit has significantly impacted pharmacy revenues. This initiative, also known as the Antimicrobial Resistance Intervention for Total Health, prohibits the sale of antibiotics without a valid prescription. The enforcement of this rule has reportedly reduced the turnover of medical shops by ₹500-700 crore.
In addition to regulatory changes, local pharmacies are also feeling the heat from large chain pharmacies offering discounted rates and the growing presence of online drugstores. Mohanan expressed concern about the unrestricted sale of medicines online without prescriptions and called for government intervention to address the potential social consequences.
Heavy Reliance on Outsourced Drugs:
Most medications used in Kerala address conditions like diabetes, cardiovascular issues, neuropsychiatric disorders, and vitamin deficiencies. Notably, nearly 98% of the medicines consumed in the state are sourced from outside Kerala.
To reduce this dependency, a group of local drug distributors, along with key players in the pharmaceutical industry, have established a manufacturing startup named Kinopharm Ltd in Puthencruz, Ernakulam. With an initial investment of ₹5 crore, the company produces affordable medicines, including antibiotics, fever treatments, and paracetamol under the brand name Kynopar.
Despite these challenges, Kerala remains the fifth-largest consumer of pharmaceuticals in India, contributing approximately 7% to the national market. The leading states in drug consumption are Uttar Pradesh, Madhya Pradesh, Maharashtra, and West Bengal.
(Input from various sources)
(Rehash/Sai Sindhuja K/MSM)